Citigroup Maintains Buy, $80 Target on United Parcel Service

Citigroup reiterates its Buy rating and $80 target price on United Parcel Service (NYSE: UPS) as the company switches to mark-to-market pension accounting that should ease 2012 headwinds.

Citigroup notes, "UPS announced its adoption of mark-to-market pension accounting, allowing the company to book large gains and losses outside of an expected 10% “corridor” as non-cash charges in the year generated, removing longer term overhangs or benefits of plan performance and discount rates. We view the move as a solid step toward removing some of the volatility traditional pension accounting provides and allows for a “cleaner” view of the company's financial performance and margins on a go-forward basis."

UPS closed at $76.04 a share on Friday.