UPS (UPS) deal with union 'expensive' says UBS

UBS analyst Thomas Wadewitz reiterated a Buy rating and $198.00 price target on UPS (NYSE: UPS).

"The tentative agreement appears to be expensive with a ~6.6% step up in full time driver wages and larger increases in part time worker pay which will step up ~25% from the current starting pay of $16.65/hour to $21/hour. We note that after the sharp year 1 step up, the pace of inflation is much more normal on the order of ~3% / year."

For an analyst ratings summary and ratings history on UPS click here. For more ratings news on UPS click here.

Shares of UPS closed at $184.69 yesterday.

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