United Parcel Receives a Buy from Oppenheimer

By Austin Angelo

In a report released yesterday, Scott Schneeberger from Oppenheimer maintained a Buy rating on United Parcel (NYSE: UPS), with a price target of $116. The company’s shares closed on Friday at $109.66.

Schneeberger noted:

“UPS outperformed expectations across its segments in 2Q17. Tracking well YTD, the company maintained 2017 adjusted EPS guidance. It cited flattish 3Q17 EPS, with one less operating day a contributing factor. This implies 4Q17 EPS could be -10% y/y at the low end of UPS’s 2017 guidance range of $5.80-$6.10, and +8% y/y at the high-end. Although forex and possibly some slowing to B2B (cited by UPS) may be possible headwinds, we view solid probability UPS will achieve the high-end of its 2017 guidance range, particularly with the steps (e.g., peak shipping charge) the company has taken to prepare for 2017 peak and as many operating days between Thanksgiving and Christmas y/y in 2017 to afford service cushion.”

According to TipRanks.com, Schneeberger is a top 100 analyst with an average return of 14.6% and a 68.8% success rate. Schneeberger covers the Services sector, focusing on stocks such as New Oriental Education Tech, Service Corp International, and Capella Education Company.

Currently, the analyst consensus on United Parcel is Moderate Buy and the average price target is $115.33, representing a 5.2% upside.

In a report issued on July 28, Aegis Capital also maintained a Buy rating on the stock with a $126 price target.

Based on United Parcel’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $15.75 billion and quarterly net profit of $1.38 billion. In comparison, last year the company earned revenue of $14.54 billion and had a net profit of $1.27 billion.

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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 through the following segments: U.S.