© Reuters. Baird lifts UPS to Outperform on attractive risk/reward and ‘discounted valuation’
Baird analysts upgraded UPS (UPS) stock from Neutral to Outperform, citing an attractive risk/reward balance and the anticipation that the current bearish cycle is nearing its end.
The price target was also raised to $170 from $165.
UPS shares climbed around 1% ahead of Friday’s market open.
“Q4 results and estimate revisions were generally rough as expected. Trends likely remain challenging through 1H24, but we are slowly exiting the trough of this cycle,” the analysts noted.
“Top ideas reflect a mix of the earliest-cycle exposure, company-specific drivers, and discounted valuations. Consistent with this view and following the most recent pullback, we are upgrading UPS to Outperform and like the risk/reward.”
The analysts also suggested that investors should shift their attention back to the long-term prospects, highlighting the cost savings and productivity improvements presented during the Investor Day on March 26, along with “improving execution.”
This story originally appeared on Investing
