Market Overview

UPDATE: Bank of America Merrill Lynch Reiterates Neutral Rating, Raises PT on United Parcel Service

Share:
Related UPS
The Biggest Losers From Monday's Market Meltdown
Jim Cramer Gives His Opinion On Sunedison, AT&T And UPS
United Parcel Service Hits 52-Week Low: Invest Now or Wait? (Zacks)

In a report published Monday, Bank of America Merrill Lynch reiterated its Neutral rating on United Parcel Service (NYSE: UPS), and raised its price target from $79.00 to $84.00.

BofA Merrill Lynch noted, “Given the perceived overhang from management's focus on the merger (note, the company surprised to the upside last quarter given its focus on cutting costs, so in reality, it was not de-focused), we believe there will be a relief rally in UPS' shares. The stock has underperformed the market by 690 bps since its February 17, 2012 merger announcement (it is down 1.5% since announcement). We reiterate our Neutral, but raise our objective to $84 from $79, as we believe this does allow for potential margin expansion given managements renewed focus on core operations (using a 16.0x multiple from 15x, which remains right below its 16.7x-24.7x historical trading range).”

United Parcel Service closed on Friday at $77.92.

Latest Ratings for UPS

DateFirmActionFromTo
May 2015NomuraReinstatesNeutral
May 2015Goldman SachsUpgradesBuyNeutral
Apr 2015Bank of AmericaUpgradesNeutralBuy

View More Analyst Ratings for UPS
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill LynchAnalyst Color Price Target Analyst Ratings

 

Related Articles (UPS)

View Comments and Join the Discussion!

Get Benzinga's Newsletters