Piper Jaffray Ups Earnings Outlook For UPS (UPS)
Piper Jaffray raised the earnings estimates on United Parcel Service (NYSE: UPS), as it previews the third quarter earnings report. It rates shares at Overweight, with an $83 price target.
In the note sent to clients, Piper Jaffray writes, "UPS is scheduled to report 3Q10 EPS on Thursday, October 21st before the market. We've raised our 3Q10 EPS from $0.88 to $0.90 on increased conviction in upside at (1) International Package and (2) Supply Chain and Freight (LTL). 3Q10's report focus likely centers on future profit potential at Domestic Package as UPS cycles through a previously announced cost rationalization / network realignment program. Given program upfront costs mostly behind them UPS should start to show accelerating efficiency benefit within Domestic Package starting 3Q10. We reiterate our Overweight rating and $83 price target."
Shares of UPS gained $1.42 to close at $68.66, a gain of 2.1%.
