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UPDATE: Citigroup Downgrades United Parcel Service to Neutral on Valuation, Cost Headwinds

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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

DateFirmActionFromTo
Dec 2016Aegis CapitalInitiates Coverage OnNeutral
Dec 2016Loop CapitalInitiates Coverage OnHold
Dec 2016JP MorganInitiates Coverage OnNeutral

View More Analyst Ratings for UPS
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Downgrades Analyst Ratings

 

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