BMO Capital Believes UPS Won’t Stop Here

By Jason Carr

United Parcel (NYSE: UPS) received a Buy rating and a $125 price target from BMO Capital analyst Fadi Chamoun yesterday. The company’s shares opened today at $113.73, close to its 52-week high of $114.75.

According to TipRanks.com, Chamoun is a 5-star analyst with an average return of 12.4% and a 71.2% success rate. Chamoun covers the Services sector, focusing on stocks such as WestJet Airlines Ltd., Kansas City Southern, and Magna International.

United Parcel has an analyst consensus of Moderate Buy, with a price target consensus of $117.33.

Based on United Parcel’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $14.85 billion and quarterly net profit of $1.27 billion. In comparison, last year the company earned revenue of $14.17 billion and had a net profit of $1.26 billion.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is neutral on the stock. Most recently, in August 2016, James J. Barber, the Senior Vice President of UPS sold 2,267 shares for a total of $248,894.

United Parcel Service, Inc. is a logistics and package delivery company, which provides supply chain management services. Its logistics services include transportation, distribution, contract logistics, ground freight, ocean freight, air freight, customs brokerage, insurance and financing. The company operates its business through three segments: U.S. Domestic Package, International Package and Supply Chain & Freight. The U.S. Domestic Package segment offers a full spectrum of U.S. domestic guaranteed ground and air package transportation services. This segment also offers time-definite, money-back guaranteed and small package delivery services in the U.S. The International Package segment includes small package operations in Europe, Asia-Pacific, Canada and Latin America, the Indian sub-continent, and the Middle East and Africa. This segment also offers guaranteed day and time-definite international shipping services. The Supply Chain & Freight segment offers transportation, distribution and international trade and brokerage services, as well as financial and information services. United Parcel Service was founded by James E. Casey and Claude Ryan on August 28, 1907 and is headquartered in Atlanta, GA.