Market Overview

KeyBanc: UPS Set To Deliver With Investment Benefits, International Growth Potential

KeyBanc: UPS Set To Deliver With Investment Benefits, International Growth Potential

United Parcel Service, Inc. (NYSE: UPS) is poised to benefit in the near-term from ongoing network investments as well as growth in international markets, according to KeyBanc Capital Markets.

The Analyst

KeyBanc’s Todd Fowler maintains a Sector Weight rating on United Parcel Service.

The Thesis

The package delivery and supply chain management multinational is expected to generate robust operating income growth in 2019, Fowler said in a Tuesday note. 

The company continues to invest in network and cost efficiency initiatives and is expected to increase capacity by around 5 million square feet in 2019, following a similar addition to capacity in 2018, the analyst said. The addition will support e-commerce growth as well as automation and digitization associated with the Smart Global Logistics Network, he said. 

Despite continued investments, United Parcel Service’s domestic EBIT is expected to grow 10-13 percent in 2019, backed by mid-single-digit revenue growth, Fowler said.

UPS is focusing on international markets and has made investments to reduce transit times in Europe and increase revenue growth in emerging markets like India, Africa and the Middle East, according to KeyBanc. 

The company's guidance reflects EBIT growth of 10-12 percent in international markets on mid-single-digit revenue growth, Fowler said. 

This is being driven both by increased traction and network flexibility that the company has achieved by using independent contracts to manage fluctuations in volume and mix, the analyst said. 

Price Action

United Parcel Service shares were up 0.39 percent at $108.83 at the time of publication Wednesday. 

Related Links:

Today's Pickup: UPS Hit With $33.8 Million In NYC Parking Fines; FedEx, $14.9 Million

Wall Street Divided On Buying The FedEx Dip

Photo by MobiusDaXter/Wikimedia

Latest Ratings for UPS

Dec 2019DowngradesOutperformMarket Perform
Oct 2019Initiates Coverage OnOutperform
Oct 2019MaintainsBuy

View More Analyst Ratings for UPS
View the Latest Analyst Ratings

Posted-In: KeyBanc Capital Markets Todd FowlerAnalyst Color Reiteration Analyst Ratings Best of Benzinga


Related Articles (UPS)

View Comments and Join the Discussion!

Latest Ratings

PLCEB. Riley FBRDowngrades59.0
ASPUCanaccord GenuityMaintains11.0
AAPLEvercore ISI GroupMaintains305.0
THTXMackie ResearchUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Ryder Appoints New CFO, EVP

Mid-Afternoon Market Update: Shoe Carnival Surges On Upbeat Q4 Results; Inpixon Shares Plunge