Buzz-Street View: UPS not out of the woods yet, brokerages say
UPS•Broker views on UPS after forecast lift
United Parcel Service UPS.N lifted annual revenue and profit forecasts above Wall Street estimates on Tuesday as it returned to growth on strong domestic demand after it completed a plan to deliver millions fewer packages for Amazon.com AMZN.O.
Slower momentum
- J.P. Morgan ("neutral," PT: $115) says they're constructive on the structural changes at UPS; adds "while the steep 2H ramp is not out of reach, the company is off to a slower start in 3Q than previously expected"
- Morgan Stanley ("underweight," PT: $76) sees structural risks for UPS as Amazon, regional competition, labor costs, and volume uncertainty continue to pressure the outlook
- Stifel ("buy," PT: $115) says, "though it's been a rocky and non-linear journey, by most accounts, UPS has achieved what it set out to do: building a leaner and more efficient network, albeit with plenty of punctuating trade disruption and macro volatility"
- Stephens ("overweight," PT: $130) expects H2 to be better than the first half, supported by strength in pricing and international seasonality
