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

In a report published Monday, Bank of America Merrill Lynch reiterated its Neutral rating on United Parcel Service

, 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.