UPDATE: Citigroup Downgrades United Parcel Service to Neutral on Valuation, Cost Headwinds
Citigroup downgraded United Parcel Service, Inc. (NYSE: UPS) from Buy to Neutral and lowered the price target from $86.00 to $83.00.
Citigroup noted, "UPS posted adjusted 4Q EPS of $1.32, below Citi and consensus estimates, and while pension was the primary headwind to 2013 EPS, the company's target range fell short of expectations at $4.80-$5.06, despite a bigger buyback than was likely included in forecasts, and 1Q is expected to be flattish YoY. While the pension headwind (16c) may simply result in a transfer of EPS from '13 to '14 if discount rates increase, the underlying earnings growth is slightly lower than expected and given the stock's strong performance (4% off its 8-year high), we feel further upside is limited, providing a total return below 15%, thus our Neutral rating."
United Parcel Service closed at $79.29 on Thursday.
Latest Ratings for UPS
|Feb 2016||Morgan Stanley||Assumes||Underweight|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.