BMO Capital upgraded UPS (UPS) to Outperform from Market Perform with a price target of $150, down from $155. The firm continues to have concerns regarding the trajectory of the company’s Domestic segment operating margins over the medium-to-long-term, but a combination of cyclical tailwinds render the near-term risk/reward favorable, the analyst tells investors in a research note. BMO is citing moderating unit cost inflationary pressures, including positive contribution from cost reduction programs, and the stock’s “low valuation” in upgrading the name, though the firm is cutting its FY24 EPS view by 3c to $7.49 and its FY25 view by 13c to $8.68.
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