Piper Jaffray Maintains Overweight, $89 PT on UPS
Piper Jaffray reiterates its Overweight rating and $89 price target on United Parcel Service, Inc. (NYSE: UPS) as the company's list rate increases suggest continued price rationality.
Piper Jaffray comments, “On a net of fuel surcharge adjustment basis, respective Air and Ground list rates are both scheduled to increase 4.9%. We note the pricing (1) matches 2011 list rate increases a year in which UPS had solid pricing power, (2) is above the historical averages for both Air and Ground (see below), however (3) there was no change to DIM factors which has been a tailwind. … We continue to believe both UPS and FDX have the potential to garner greater price – particularly within Ground products – given DHL America's prior exit from the market.”
UPS closed at $69.14 per share on Friday, up 0.3 percent.
