FedEx, UPS: Destined to Be More Alike

Discussion in 'The Latest UPS Headlines' started by cheryl, Sep 23, 2010.

  1. cheryl

    cheryl I started this. Staff Member

    FedEx, UPS: Destined to Be More Alike - Barrons

    Shares of FedEx (FDX) and United Parcel Service (UPS) are both higher today after Sterne Agee analyst Jeff Kauffman started coverage of both with a “Buy” rating, assigning a $105 price target to FDX and a $100 price target on UPS.

    The two companies are destined to look more and more alike from a fundamentals standpoint.

    As the two move in opposite paths, their “returns will begin to look more like each other,” writes Kauffman:

    We believe that UPS will alsways have a moderate edge because of its large lead in the Ground business category, but perceptions that FedEx is more of a “global” investment are not as true as they used to be. As FedEx has built out its ground and freight networks, domestic trucking is representing a larger portion of the company’s earnings and revenues.