Union Pacific (NYSE:UNP) Facing Headwinds in 2011

Based upon the cost outlook for 2011, Barclays lowered their first quarter and full year 2011 EPS estimates on Union Pacific.

Barclays says, "UNP reported 4Q10 EPS at $1.56 to our $1.51 and consensus of $1.48, but a lower tax rate helped by -8c, making the quarter largely in line with consensus...The cost outlook was a drag relative to our expectations for 2011, but lower interest expense and improved intermodal pricing offset much of the cost headwind. We revise 1Q to $1.35 from $1.42 and 2011 from $6.55 to $6.45."

Barclays maintains an "Equalweight" rating on Union Pacific (UNP), which closed Friday at $94.51, losing $0.54, or 0.57 percent. Barclays cut their price target on Union Pacific from $110 to $109.