Street View: UPS delivers on margins even as package volumes take a detour

** United Parcel Service UPS.N said on Tuesday that its focus on higher-margin business allows it to earn more while delivering fewer packages during the key holiday season and in the years ahead

** Co cut doorstep deliveries of millions of unprofitable packages for Amazon.com AMZN.O, its largest customer

** Median PT of 30 brokerages covering the stock is $116.5 - LSEG-compiled data

QUALITY OVER QUANTITY

** Morningstar (fair value: $109) says business-to-consumer volume declines should moderate now that the Amazon pullback is complete, although year-over-year comparisons are likely to remain challenging for the next few quarters

** Jefferies ("buy," PT: $135) says positive pricing spreads, continued productivity gains, and stronger FCF support sustained domestic margin expansion, renewed earnings growth

** Stephens ("overweight," PT: $120) says UPS' near-term outlook favorable on peak-season surcharges, smoother operations and easier year-over-year comparisons in Q1

** TD Cowen ("hold," PT: $116) says UPS likely to generate more revenue per package, but softer economy could intensify competitive pressure