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Oppenheimer Keeps Their Buy Rating on United Parcel (UPS)


In a report released today, Scott Schneeberger from Oppenheimer reiterated a Buy rating on United Parcel (NYSE: UPS), with a price target of $129. The company’s shares closed yesterday at $119.70.

Schneeberger said:

“UPS’s Transformation Conference covered a lot of ground and focused significantly upon four “strategic imperatives”: 1) International high-growth markets; 2) Global B2B and B2C e-commerce; 3) Healthcare and life sciences; and 4) Small and medium-sized businesses. Pursuit of initiatives and profitable growth across these “imperatives,” as well as additional Transformation initiatives such as UPS’s previously announced Voluntary Retirement Plan (VRP) and global procurement cost efficiencies are expected to drive incremental adjusted EPS improvement of $1.00-1.20 by 2022. This is incremental to UPS’s targeted $800M-1B of cost savings/ avoidance by 2021 via four Smart Logistics Network initiatives introduced at its 2/21/17 Investor Day. Having already modeled VRP cost savings benefit in 2019E, we’re (potentially conservatively) maintaining our 2018E/2019E at this juncture.”

According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 12.2% and a 70.9% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, Landstar System Inc, and General Finance.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for United Parcel with a $129.15 average price target, representing a 7.9% upside. In a report issued on September 4, Raymond James also upgraded the stock to Buy.

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The company has a one-year high of $135.53 and a one-year low of $101.45. Currently, United Parcel has an average volume of 2.49M.

Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock.

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