Goldman Says Buy UPS (UPS)

Goldman Sachs is raising its price target on shares of United Parcel Service, Inc.

to $90 from $83. It has a Conviction Buy rating on shares. In the note, Goldman writes, "We expect 2011E domestic express yields to continue to improve due to: (1) a greater capture ratio of published 5% rate increases, (2) changes to dimensional weight pricing, and (3) rising package weights. In addition, our demand indicator is pointing towards solid 6.5% volume growth in 2011. UPS (CL-Buy) remains our top pick, due to improving pricing and an inflection point in shareholder returns. Given improved pricing, we are raising our estimates and price target to $90 from $83." Shares of UPS lost 34 cents on Friday to close at $72.15.