Deutsche Bank Analyst Skeptical about Union Pacific Corporation (UNP)'s Share Performance

Union Pacific Corporation (NYSE:UNP) is one of the best stocks to buy according to Seth Klarman. As of December 12, the average price target for UNP suggests an upside of 9%; however, the Street high indicates an upside of 22%. As of the third quarter of 2025, billionaire Seth Klarman held nearly 1.5 million units of Union Pacific, worth $353.6 million.

On December 11, Richa Harnain, an analyst at Deutsche Bank, downgraded Union Pacific Corporation (NYSE: UNP) to Hold from Buy and lowered the price target to $245 from $272, according to TheFly. The analyst appeared disappointed by the underperformance of the company's shares even after reporting two strong quarters. That makes her skeptical about performance if the company reports lower earnings beats and if UNP's acquisition of Norfolk Southern faces further opposition. These uncertainties underpinned Richa's downgrade of the stock.

Previously, on November 24, Union Pacific announced that it had signed a deal with the International Brotherhood of Boilermakers (IBB), which ensures the protection of unionized workers’ positions following the merger of UNP and Norfolk Southern. The IBB is the 4th national union to come to a major agreement with UNP, which protects workers of both companies when the merger takes place. The idea is to offer them stable employment for life, contingent on meeting standard employment conditions. The companies declared their intention to merge operations on November 14, and 99.5% of UNP shareholder votes supported the issuance of new common stock related to the Norfolk Southern merger.

Separately, on November 18, Union Pacific announced a $1.38 per-share dividend, payable on December 30, 2025, to shareholders of record as of December 5. The company pays quarterly dividends and has a rich dividend history dating back 126 consecutive years.

Union Pacific Corporation (NYSE:UNP) is one of the largest railroad operators in the United States. It transports a wide range of goods, including grain, food items, fertilizers, coal, and renewable products.

While we acknowledge the potential of UNP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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