July 23, 2015
11:14 am ET ... S&P CAPITAL IQ MAINTAINS BUY OPINION ON SHARES OF
UNION PACIFIC (UNP 93.59****): We cut our 12-month target price to $112 from
$137, valuing the shares at 17.3X our '16 EPS estimate of $6.47, lowered today
from $7.23. This is below UNP's ten year average of 18X, warranted by
uncertainty related to demand. We also lower our '15 EPS estimate to $5.80 from
$6.29. UNP Q2 EPS of $1.38 vs. $1.43 missed our $1.63 estimate on lower volumes,
particularly in coal and intermodal. We expect the near term environment to
remain weak. However, after a sharp decline in the share price, we still find the
stock attractively valued. Dividend yield is 2.2% at current price. /J. Corridor
BTU was pushing out of SP500 because the market value was too low. It then moving lower even faster, from 14 to 1.2. Don't buy it.
IBM still waste money buying back the trash (IBM).
UNP entering bear market.