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

By Reuters News

** 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

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.