UPS upgrade details -- to Buy at Stifel; tgt lowered to $121
Stifel upgrades UPS to Buy from Hold and lowers their tgt to $121 from $127 as they believe the package and general freight markets remain strong, and the stock has sold off to a valuation that firm believes reasonable considering the risks ahead and the increased capital investments expected over the next several years. Assuming Amazon remains a significant and profitable customer, and the Teamsters do not go on strike or extract significantly higher pay increases from the company in its next long-term contract (to be negotiated this summer), they believe the shares have been oversold and find it the most attractive dividend play in large cap U.S. transportation with a compelling total return story