UPDATE: J.P. Morgan Raises EPS Estimates for United Parcel Service; Increases PT
In a research report published today, J.P. Morgan has raised its EPS estimates for United Parcel Service (NYSE: UPS) based on pension change proving to be positive for the stock. In the report, J.P. Morgan commented, “UPS announced they have made significant changes to their pension accounting which result in a $0.51/share charge in 4Q11 and what we expect to be much lower pension expense in 2012 relative to the expense under the old accounting method. We are raising our EPS estimates to reflect 110 bp of stronger domestic package OR performance in 2012 due purely to lower than expected pension expense. Because it should allow UPS to provide better 2012 EPS guidance, we believe the accounting change will likely be positive for UPS stock.” J.P. Morgan maintains its Neutral rating and increases its PT from $82 to $86 on United Parcel Service, which closed Friday at $76.04.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.