(Reuters) – Shares of Union Pacific Corp (NYSE:) surged practically 10% earlier than the bell on Monday, a day after the U.S. railroad operator introduced that its Chief Government Lance Fritz would step down this 12 months amid stress from investor Soroban Capital Companions.

The beneficial properties got here after some Wall Road analysts backed the management change on the firm, which has struggled with labor shortages and repair points. Union Pacific’s shares have dropped greater than 25% over the previous 10 months.

Soroban, which owns an about $1.6 billion stake in Union Pacific, urged the corporate on Sunday to think about its former chief working officer Jim Vena for the function — a selection that was backed by brokerage BMO Capital Markets.

Vena, who serves as a board member at FedEx Corp (NYSE:), was beforehand thought-about as a candidate to guide Canadian Nationwide Railway (TSX:) Co.

“We imagine that Vena could also be uniquely positioned to instill a powerful working tradition at UNP and place the corporate to capitalize on the amount development alternatives accessible all through its community,” BMO’s Fadi Chamoun stated in a observe.

Different analysts stated a brand new management has the potential to enhance the corporate’s working ratio — a key profitability metric.

The Omaha-Nebraska primarily based firm has confronted extreme criticism over the previous 12 months from prospects and the Floor Transportation Board (STB) over rail service and delivery delays.

“Given the continuing challenges at UNP, a change will probably be seen favorably,” Wells Fargo (NYSE:) Analyst Allison Poliniak-Cusic stated.

In its most-recent quarter, the corporate flagged increased working bills brought on by operational inefficiencies and the present financial setting hitting its income development.