UPS gains as UBS raises stock to Buy By Investing.com

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<span>© Reuters. UPS (UPS) gains as UBS raises stock to Buy</span><br />
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<p>Shares of UPS (UPS) have climbed more than 4% Tuesday after UBS upgraded the stock to Buy from Neutral, raising the price target to $175 from $160 per share.</p>
<p>Analysts at UBS told investors that UPS is a “cost narrative” and expectations for the company are currently low.</p>
<p>“We expect management to deliver a strong cost reduction program to support margin expansion and attractive EPS growth despite facing a backdrop of muted revenue growth,” said analysts at UBS.</p>
<p>“We expect UPS’s March 26 analyst meeting to provide greater visibility to cost savings and act as a catalyst for stronger valuation,” they added.</p>
<p>The significant move down in UPS shares is in response to their 4Q report and EPS guidance, which suggests that investor expectations reflect a low bar,” according to UBS. </p>
<p>“We also believe investors may be skeptical about UPS’s ability to deliver stronger 2H24 performance and achieve 10%+ margin performance in 4Q24,” commented analysts at UBS. “In contrast, we expect UPS to deliver strong cost takeout, which would provide support for a ramp in Domestic Package margin in 2H24 and 10%+ margin performance in 2025E. </p>
<p>UBS forecasts a 10.4% domestic margin in 2025 for UPS, which is a key factor supporting the bank’s $10.30 per share forecast.</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/ups-gains-as-ubs-raises-stock-to-buy-432SI-3294301">Source link </a></p><p>The post <a href="https://forextraderhub.com/ups-gains-as-ubs-raises-stock-to-buy-by-investing-com.html">UPS gains as UBS raises stock to Buy By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>