Redburn raises UPS to Buy, indicating that “stock prices are at or near their lowest point.” From Investing.com

Redburn raises UPS to Buy, indicating that “stock prices are at or near their lowest point.” From Investing.com
Redburn raises UPS to Buy, indicating that “stock prices are at or near their lowest point.” From Investing.com

Analysts at Redburn Atlantic raised their recommendation for United Parcel Service (UPS) stock to “Buy” and raised their price target to $180, based on their projections of higher earnings.

“Our assessment of UPS indicates that the company’s revenues, volume, profit margins and stock price are currently at or near low levels. We see signs of stability, and in some cases improvement, in key economic indicators” , analysts said.

“These observations, combined with historically recurring patterns in UPS activity, lead us to expect a recovery in shipping volumes by the fourth quarter of 2024,” they continued.

Additionally, at the Investor Day event in March, UPS management outlined aggressive goals for the next three years, aiming to achieve an operating profit margin above 13%. The plan includes measures such as reducing the workforce, streamlining operations and improving productivity through technological advances, as highlighted by analysts at Redburn.

Analysts have expressed the belief that the value of UPS shares is currently at or near its lowest level. While the company’s ambitious goals for the next three years may be difficult to achieve by 2026, these goals could be a strong motivational factor that could contribute to a rise in the stock price over the next year.

Before the market opened on Wednesday, UPS shares rose 1%.

This article was produced and translated with the help of artificial intelligence and was reviewed by an editor. For further details, please see our Terms and Conditions.

 
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