Union Pacific on Thursday posted a better-than-expected profit for the fourth quarter helped by improving volumes and robust pricing, which was partially offset by lower fuel surcharge and less profitable cargo mix.

(Reuters) -Union Pacific reported a fourth-quarter profit on Thursday that rose 7% on the back of higher grain and fertilizer shipments and core pricing gains, sending the railroad operator's shares up more than 4% before the bell.

TD Cowen analysts adjusted their outlook on Union Pacific Corporation (NYSE: NYSE:UNP), increasing the price target from the previous $245.00 to $258.00. The firm maintained a Buy rating on the stock,