Oppenheimer analyst Scott Schneeberger reiterated a Buy rating on United Parcel (UPS) yesterday and set a price target of $124. The company’s shares closed yesterday at $110.86.
“We’re slightly modifying estimates following incremental 1Q19 color from UPS at a recent investor conference. The company reiterated its 2019 adjusted EPS guidance of $7.45-$7.75 and continues to expect 1Q19 adjusted EPS to represent ~19% of full-year 2019 adjusted EPS. It incrementally communicated an expectation of 1Q19 adjusted EPS being “around $1.41.” As a result, our 1Q19E/2019E adjusted EPS modify to $1.41 (-9% y/y; from $1.46; $1.45E consensus)/$7.55 (+4% y/y; from $7.60; $7.55E consensus), respectively. We’re reiterating our Outperform rating and $124 target, which represents 16.4x our modified 2019E EPS and is slightly below UPS’s four-year historical average of 17x FTM consensus EPS. We’re drawn to the company’s solid balance sheet, ROIC, support via share repurchases and (recently increased) dividend yielding 3.5%.”
According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 7.1% and a 61.5% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, General Finance, and XPO Logistics.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for United Parcel with a $118.78 average price target.
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United Parcel’s market cap is currently $95.12B and has a P/E ratio of 20.12. The company has a Price to Book ratio of 31.49.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is neutral on the stock.
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United Parcel Service, Inc. operates as a logistics and package delivery company providing supply chain management services. Its logistics services include transportation, distribution, contract logistics, ground freight, ocean freight, air freight, customs brokerage, insurance, and financing.