CFRA Keeps Hold Opinion On Shares Of United Parcel Service (UPS)

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $149, raised $1, reflects a 15x multiple of projected ’25 EPS, in line with UPS’s historical forward average. We cut our ’24 EPS estimate by $0.14 to $8.22, but raise ’25’s by $0.07 to $9.96. Q1 EPS of $1.43, vs. $2.20, beat consensus by $0.08. In UPS’s U.S. Domestic segment, average daily volumes fell 3.2% Y/Y, and revenues fell 5.0%, indicative in our view of ongoing (albeit modest) pricing pressure. We see a similar situation in the International segment, where average daily volumes dropped 5.8% Y/Y and revenues fell 6.3%. UPS maintains its ’24 revenue guidance of a range of $92.0B-$94.5B, which would suggest revenue growth in ’24 of 1%-4%, likely with an acceleration in 2H ’24. We think cost efforts will be key to UPS achieving higher earnings power, but likely bearing fruit in ’25, after a down year in ’24. We think a near-term volume recovery remains a bit elusive and is dependent on a broader macro recovery.

Scroll to Top