“Union Pacific Stock “Potential To Double” After CEO Ousted; Railroad Stocks Steady After Ohio Disaster”
February 27, 2023
“…Soroban Capital Partners on Sunday publicly called for the ouster of the railroad’s CEO, Lance Fritz. A letter from the New York-based hedge fund projected that a change to ‘best-in-class’ leadership would result in a doubling of Union Pacific stock price over the next two years.
Soroban projected Union Pacific earnings per share of $18 in 2025. That would represent 59% EPS growth compared to 2022. It is also 24% more than analysts’ 2025 consensus estimates of $14.46 per share, according to FactSet.
Soroban favors former Chief Operating Officer Jim Vena for the job. The hedge fund says it owns a $1.6 billion stake in UNP — about 0.76% of outstand UNP shares, according to FactSet.
“Unlike typical shareholder engagements which come with numerous demands, Soroban has only one ask — install new leadership who can get the trains to operate safely and on time,” the letter said…”
See the bold? If thats the case there’s only one option. Upgrade the infrastructure. The railroads themselves are unsafe and falling apart. Trains can barely go 50 MPH because they will derail. That’s how bad the railroad tracks are. In other countries trains go hundreds of miles per hour. There’s no reason why our railroad system is this neglected.