UPDATE: Oppenheimer Initiates United Parcel Service with Outperform Rating on Strong Operational Profile

In a report published Tuesday, Oppenheimer initiated coverage on United Parcel Service UPS with an Outperform rating and $95.00 price target. Oppenheimer noted, “We're initiating coverage with an Outperform rating/$95 target. UPS enters 2013 with a record of consistent operational/financial execution, and a gradual economic recovery should bolster US Domestic Package segment B2B and B2C activity, with the latter benefiting from a secular tailwind of e-commerce growth. Global trade is expected to outpace rebounding global GDP, lending to International Package segment enhancement. Additionally, we anticipate margins continuing to expand in the Supply Chain and Freight segment as efficiencies improve as customers increasingly outsource to UPS's global infrastructure/solutions. With ample cash and generating FCF >10%/>100% of revenue/adj'd net income, we view potential upside to UPS's plan to repurchase $4B of shares in 2013 on top of its consistently building dividend, currently yielding 3%.” United Parcel Service closed on Tuesday at $84.07.