UPDATE: Deutsche Bank Upgrades United Parcel Service to Buy Following Suspension of Acquisition
Deutsche Bank upgraded United Parcel Service, Inc. (NYSE: UPS) from Hold to Buy with a $92 price target.
Deutsche Bank noted, "We have upgraded UPS To Buy (from Hold) as we now see a more aggressive capital deployment and fewer headwinds constraining share performance following this morning's announcement that UPS will no longer purchase TNT Express. We believe investors had been cautious about its proposed acquisition of TNT Express. In conjunction with the merger termination, UPS will pay a one-time €200 million ($0.18/share, assuming a 34.5% effective tax rate and 962 diluted shares outstanding) breakup fee to TNT Express to walk away from the transaction as the European Commission's case team informed UPS that it was working towards proposing a prohibition decision."
United Parcel Service closed at $77.92 on Friday.
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