We View UPS’s Risk/Reward Profile Compelling, Says Oppenheimer


In a research report issued today, Oppenheimer analyst Scott Schneeberger maintained an Outperform rating on United Parcel Service (NYSE:UPS) with a price target of $113, on the back of the company’s third-quarter results 

Schneeberger observed, “With UPS seemingly in positioning mode since last holiday season, its relatively strong broad-based 3Q14 performance across its segments was encouraging as it approaches 2014 peak, where execution will be a primary company/investor focus. UPS is appearing increasingly well prepared to deliver sound service/performance this holiday season, with solid improvements in U.S. B2B & Freight on top of perpetually robust B2C contributing a healthy domestic backdrop. Additionally, International Package grew 3Q14 revenue mid-single digits/expanded operating margin 70bps y/y, as UPS lacks glaring pain points, which sets-up well into its 11/13/14 Investor Day where commentary/outlook should be upbeat. Taken together with the company’s strong balance sheet/FCF, we view UPS’s risk/reward profile compelling.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Scott Schneeberger has a total average return of 17.2% and a 72.1% success rate. Schneeberger has a 5.9% average return when recommending UPS, and is ranked #177 out of 3347 analysts.

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