J.P. Morgan Overweight on UPS

J.P. Morgan Chase & Co. is out with a research report on UPS UPS and it has an Overweight rating and a $82 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "While small package demand indicators in 3Q suggest that UPS likely saw y/y declines in volumes in the U.S. and slower growth in international markets than was the case in 2Q, we believe pricing strength and operating execution should allow for strong EPS growth of about 14%. FDX's August quarter results (1QF12) provide a positive read for pricing; thus, we are tweaking up our 3Q forecast as the read on pricing is incremental whereas the likely soft volume performance in the U.S. was already expected. We are lowering our international volume growth forecast but this only partially offsets the incremental pricing. Overall we expect a solid 3Q report and a positive outlook on pricing to support potential upside for UPS stock." Shares of UPS gained 38 cents yesterday to close at $69.20.