William Blair Recommends Buying United Parcel Service Shares Following Investor Conference
William Blair analyst Nate Brochmann reiterated an Outperform rating on United Parcel Service (NYSE:UPS), as the company hosted its 2014 investor conference on Thursday, November 13, providing details about new initiatives and growth opportunities, as well as its outlook for the next five years. No price target was provided.
Brochmann noted, “Our overall conclusion from the conference was very positive. We believe the network coupled with powerful technology platforms leaves UPS well positioned to take advantage of e-commerce trends and omnichannel strategies across the globe. Technology in this industry continues to develop at a rapid pace and we believe it will help UPS work with its customers better to form collaborative solutions that result in better e-commerce package profitability while allowing end-consumers more options to receive packages in ways that are convenient for them. UPS will have to work hard to continue to drive efficiency improvements while making investments to support growth and yet remain nimble enough to react to changing shipper trends and economic conditions across the globe. This is no easy task, but these initiatives the company is putting in place certainly give it an opportunity to achieve these very realistic growth targets.”
The analyst concluded, “We recommend investors purchase shares based on improving economic trends and potential profitability improvements resulting from growth initiatives.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Nathan Brochmann has a total average return of 5.4% and a 100.0% success rate. Brochmann has a 6.5% average return when recommending UPS, and is ranked #1980 out of 3393 analysts.