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Fly News Breaks for December 6, 2018
UPS, FDX
Dec 6, 2018 | 07:34 EDT
Citi analyst Christian Wetherbee views the White House Task Force's report on the U.S. postal system as a "material positive" for parcel pricing. The analyst says the Task Force affirmed his view that the U.S. Postal Service's new business model needs to be structured around parcel and that pricing should be aimed at maximizing profit versus volume. Collectively, the report appears to support the thesis that the USPS should be restructured to sustain profits and reinvestment using the secular growth of parcel as a lever, Wetherbee tells investors in a research note. He believes the initiatives laid out in the report, many of which Treasury believes can be enacted directly by the Trump Administration, are likely to lead to higher parcel rates, which is a "long-term positive" to FedEx (FDX) and UPS (UPS).
News For FDX;UPS From the Last 2 Days
UPS
Mar 28, 2024 | 07:32 EDT
TD Cowen lowered the firm's price target on UPS to $140 from $147 and keeps a Hold rating on the shares. The firm said they attended UPS' investor day this week at the company's Worldport facility in Louisville and noted management set out their financial targets through 2026. Cowen believes the revenue guide is very aggressive and were disappointed that they do not expect their P&L targets to translate into higher free cash flow. Also, overcapacity remains a major concern among investors.
UPS
Mar 28, 2024 | 06:58 EDT
Stifel lowered the firm's price target on UPS to $170 from $178 and keeps a Buy rating on the shares after the company hosted its first analyst day since 2021 and highlighted progress made on several strategic initiatives. The new multi-year outlook presented exceeded Street expectations, but back-end weighted targets that necessitate market recovery "may be optimistic, especially after 2023's weak demand and labor challenges," the analyst tells investors in a recap note. While investors will have to be more patient to see benefits accrue, the firm says it feels "good about UPS' ability to execute," the analyst added.