Piper Jaffray Continues To Be Overweight On UPS (UPS)

Piper Jaffray continues to have an Outperform rating on United Parcel Service (NYSE:

), as it believes UPS is one of the best names to play the transport recovery. In a note sent to clients Piper Jaffray writes, "Freight recovery continues and we note a recent pickup in 4Q10 US manufacturing activity per ISM data. We believe US manufacturing improvement has positive demand / volume implications for US centric Transports – mainly TL, LTL, and Intermodal providers. Additionally, this potential 4Q10 demand improvement comes at an opportune time for TLs and LTLs negotiating a disproportionately larger amount of contractual Freight during 1Q11 which could boost TL and LTL 2011 pricing potentially above current market expectations. We continue to believe the best way to play recovery is through owning Overweight rated FDX, UPS, ODFL, WERN, JBHT, LSTR, and HUBG." Shares of UPS gained 42 cents yesterday to close at $71.86.