BofA lowered the firm’s price target on UPS (UPS) to $105 from $112 and keeps a Neutral rating on the shares after the company agreed to settlement terms with the International Brotherhood of Teamsters to limit its Driver Choice driver buyout program. The firm lowers its target multiple one turn as UPS’ road to margin improvement is a bit tighter as it relies more on attrition, given union contract constraints, the analyst tells investors.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on UPS:
- UPS: Labor Constraints, Limited Cost Flexibility, and Valuation Risks Justify Neutral Rating
- Amazon to use USPS for over 1B annual package deliveries, Reuters says
- UPS, FedEx move lower after report of Amazon deal with USPS
- UPS, Teamsters settle on driver severance packages
- Amazon (AMZN) Hits Sellers with New 3.5% Fuel Surcharge as Shipping Costs Rise