Barclays upgrades Union Pacific (NYSE:UNP) to an Overweight rating after having the rails stock slotted at Equal Weight.
Analyst Brandon Oglenski says Union Pacific shares are trading below market valuation to present a "meaningful opportunity" for long-term investors.
Oglenski forecasts improving fundamentals for UNP in 2022 on his view that the current volume pressure is a function of constraints across the global supply chain rather than a signal of waning demand.
Barclays lifts its price target to $260 from $240.
Shares of Union Pacific are up 1.55% premarket to $201.54.