Deutsche Bank Reiterates a 'Buy' on UPS (UPS); Revisiting Q1 Domestic Outperformance & Productivity Initiatives

Deutsche Bank reiterates a 'Buy' on UPS (NYSE: UPS), PT increased from $90 to $93.

Deutsche analyst says, "The more we dig into UPS’ excellent Q1 2011 results, the more impressed we have become. In addition to leveraging an improving small parcel pricing environment, UPS has done a great job of improving employee productivity. In Q1, UPS improved productivity with U.S. domestic miles driven down 2% y/y, direct labor hours down 3% y/y, and domestic block hours down 1% y/y. We believe UPS is better leveraging its Package Flow Technology and Telematics systems, which aided the company’s better-than-expected operating leverage."

" While we have not changed our 2011 EPS estimates, we have increased our 2012 EPS estimates to $5.16, from $5.00 as we believe UPS is poised to drive continued operating leverage and we still see an upside bias to our 2011-12 EPS estimates."

For more ratings news on UPS click here and for the rating history of UPS click here.

Shares of UPS closed at $74.37 yesterday.

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