Deutsche Bank Discusses UPS' Freight Rate Increase (UPS)

Deutsche Bank discusses United Parcel Service, Inc. UPS decision to increase freight rate charges by 5.9%. It has a Buy rating, and a $78 price target on shares. In the research report, Deutsche Bank writes, "...UPS announced a 5.9% general rate increase (GRI) covering non-contractual shipments at its LTL segment in the U.S., Canada, and Mexico. The rate adjustment will take effect on October 18, 2010 and applies to minimum charge, LTL rates, and accessorial charges. The GRI matched re- cent announcements from YRC Worldwide and Arkansas Best (both are implementing a 5.9% GRI in October 2010). We note that FedEx Freight announced a 6.9% effective GRI last week as the company's LTL segment aims to improve its financial performance." Shares of UPS closed at $66.44 on Friday, a loss of 25 cents.