Deutsche Bank analyst Amit Mehrotra upgraded Union Pacific to Buy and raised his price target for the shares to $175 from $159. The stock closed the trading day up 3%, or $4.62, to $147.38. Following several years of "weak" cost control, Union Pacific is now positioned for at least $3B in profit improvement, Mehrotra tells investors in a research note. He believes this translates to over 1,000 basis points of EBIT margin improvement and $35B of additional equity value. Further, after speaking to industry stakeholders, Mehrotra thinks Union Pacific management is under "significant pressure to achieve cost targets."