United Parcel Service Upgraded at Deutsche Bank (UPS)

cheryl

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United Parcel Service Upgraded at Deutsche Bank (UPS) - Dividend
Package delivery giant United Parcel Service, Inc. saw its rating and earnings estimates boosted on Wednesday by analysts at Deutsche Bank.

The analyst raised its rating on UPS to “Buy” from “Hold,” and set a $70 price target on the shares, which had closed at $58.62 on Tuesday. Deutsche also raised its 2010 and 2011 earnings estimates for the company by 7% and 4%, respectively.

The firm comments that “We are upgrading shares of UPS to Buy, as we expect the company to benefit from improving International Package volumes as well as synergies from its U.S. Domestic Package restructuring initiatives. The restructuring initiatives are expected to begin to be accretive in H2 2010 (net neutral annual impact) and add $0.10/share annually to our EPS estimates beginning in 2011. We see solid value in UPS shares, with the company trading at a 3% dividend yield and 7% free cash yield. UPS is now Buy-rated, but FedEx (NYSE: FDX) (Buy-rated) remains our top Airfreight pick.”
 
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