UPS Target Cut, Still a Buy

Discussion in 'The Latest UPS Headlines' started by cheryl, Oct 27, 2008.

  1. cheryl

    cheryl I started this. Staff Member

    UPS Target Cut, Still a Buy - Yahoo

    We are retaining our Buy on United Parcel Service, Inc., but cutting our target price to $60. UPS reported third quarter diluted EPS of $0.96, down 9% year over year, but above the $0.89 consensus and our $0.90 estimate.

    Despite this, we are shaving our EPS estimate for 2008 to $3.57 from $3.60, as UPS has guided to the lower end of its $3.50-3.70 EPS range, and to $3.75 from $4.15 for 2009. Our estimate reductions reflect slowing revenue growth from global economic weakness that will hit harder than previously expected.