UPDATE: Bank of America Reiterates Buy Rating, Raises PT on United Parcel Service on Raised Buyback
In a report published Friday, Bank of America reiterated its Buy rating on United Parcel Service (NYSE: UPS), and raised its price target from $93.00 to $95.00.
Bank of America noted, “UPS re-authorized a $10 billion share repurchase program, updating its similar approval from 2012 with a new start. This encompasses its recent January 31 announced plan to buy back $4 billion of its shares in 2013, which increased its prior $1.5 billion target (a level that had been reduced during its TNT bid). We currently target $6.4 billion to be repurchased over the next 2 years ($4 billion in 2013 and $2.4 billion in 2014). If we include the full $10 billion over the next two years ($5 billion in 2013, up from our $4 billion target, and $5 billion in 2014, up from our $2.4 billion target), the increased buyback would likely have a minor impact to our 2013 EPS estimate ($5.03 vs. our current $5.00 estimate), while our 2014 EPS estimate could increase 3% or $0.15/sh, to $5.90 from $5.75).”
United Parcel Service closed on Thursday at $82.69.
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