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.
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.
