Markets

Deutsche Bank Rates UPS as a “Buy” (UPS)

Package delivery giant United Parcel Service, Inc. ( UPS ) on Friday caught some bullish sentiment from analysts at Deutsche Bank.

The firm came out with a research report following UPS' investor day, ranking the stock as a "Buy" with an $86 price target. That target suggests a 30% upside to the stock's Thursday closing price of $66.18.

A Deutsche Bank analyst commented, "Despite an uncertain near-term economic backdrop, UPS issued an upbeat 5-year outlook as it sees growth in global trade, core pricing improvement, and productivity gains driving margin expansion and a 10-15% 5-year EPS CAGR from 2011E levels. UPS maintained its near-term economic outlook, which sounded bearish two months ago and now resonates positively. We see a compelling risk/reward with UPS given its expansive product offering, brand name, strong free cash flow generation, and expected core pricing gains. BUY."

UPS shares were unchanged in premarket trading Friday.

The Bottom Line

Shares of United Parcel Service ( UPS ) have a 3.14% dividend yield, based on last night's closing stock price of $66.18. The stock has technical support in the $62 price area. If the shares can firm up, we see overhead resistance around the $70 price level.

United Parcel Service, Inc. ( UPS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

UPS

Other Topics

Stocks

Latest Markets Videos