** Benchmark lifts price target on U.S. railroad operators Union Pacific UNP.N and CSX CSX.O

** Brokerage says intermodal traffic across the industry rises despite tough year-ago comparisons, driven by strength in domestic freight

** Maintains its "buy" rating for Union Pacific, noting that stronger freight volumes and pricing support a better earnings outlook

** Benchmark says stronger rail traffic trends support higher earnings expectations for CSX and keeps its "buy" rating

** As of last close, UNP had risen 24.6% and CSX up 37.7% YTD