Deutsche Bank Upgrades UPS (UPS) to Buy
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Deutsche Bank analyst Amit Mehrotra upgraded UPS (NYSE: UPS) from Hold to Buy with a price target of $220.00 (from $197.00).
The analyst comments "In the near-term, we think market participants are overly focused on volume growth and not on mix and productivity initiatives, which we think can drive positive revenue growth and solid contribution margins despite modestly lower domestic volumes. Over the mid term, we think the upcoming teamsters contract negotiation will be more benign than expected, which partly reflects the signifiant cost of living adjustments (COLA) and market rate adjustments (MRAs) made to the current wage structure (UPS's strong results in 3Q and 2H'22e is despite $600 million of incremental Union wage and benefit costs). We also see potential for negotiations to yield opportunity for UPS to gain add'l market share via time in transit."
Shares of UPS closed at $182.52 yesterday.
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