March 19, 2019 / 7:05 PM / 7 months ago

BUZZ-Union Pacific Corp: Loop Capital downgrades, cuts PT on polar vortex, Nebraska flooding

** Shares of the railroad operator drop 3 percent to $161.3 after Loop Capital Markets downgrades its rating to “hold” from “buy”; cuts PT to $182 from $193

** Brokerage says recent double punch of polar vortex and Nebraska flooding to pose challenge on cost efficiency, service, and growth in at least the first half of the year

** Says it took UNP five quarters to fully restore service during the last polar vortex in 2014

** Adds Nebraska flooding, which is to a large degree, the crossroads of the UNP network, is also home to the rail road’s largest car classification yard

** “Flooding in this state has already caused UNP to issue some traffic embargoes beginning March 16” - Loop Capital Markets

** Says railroads simply don’t “snap back” from events of these magnitudes, investors need to be patient before costs can be realigned

** Loop Capital Markets has a 4-star rating, according to IBES Refinitiv

** UNP shares have risen about 20.3 pct YTD (Reporting by Sanjana Shivdas and Rachit Vats)

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