UPDATE: JP Morgan Upgrades United Parcel Service to Overweight

JP Morgan raises its rating on United Parcel Service

to Overweight from Neutral with a $92 price target (previously $88) as it believes the TNTE acquisition is a big win for the company and is also supported by favorable core US trends. JP Morgan notes, "We are upgrading UPS from Neutral to Overweight because we believe the company's agreement to buy TNTE is a significant positive and we anticipate favorable trends in UPS's core domestic package business. We expect significant EPS accretion in 2013 and 2014 from the TNTE deal and we also view it as a strategic positive in terms of boosting UPS's global footprint. UPS's 4Q volume performance was much better than expected and we believe that favorable trends in the US economy should support continuing momentum for UPS in 2012." UPS closed at $78.41 a share on Friday.