Evercore ISI started off coverage on UPS ( NYSE: UPS ) with an Outperform rating on the view that the shipping giant has the ability to ride out volume headwinds.
Analyst Jonathan Chappell and team said UPS is certainly not recession-proof and appears to have less self-help upside than FDX, but pricing momentum and an ongoing focus on costs are seen helping UPS' hold up better than most transport peers in a slowing or recessionary macro backdrop.
"The stock has been a relative in-line performer with the broader transport landscape over the last 3 months (better than rails and the broader market, worse than trucking/FDX), so it doesn’t feel like there’s much controversy heading into the print. Only a large guidance reset is likely to surprise and result in greater -than -market volatility over the coming weeks."
The Seeking Alpha Quant Rating on UPS moved down to Hold on March 3 and has stayed there ever since.
UPS ( UPS ) is expected to post its earnings report during the last week of July.
Shares of UPS ( UPS ) fell 1.55% premarket to $181.80 vs. the 52-week trading range of $165.46 to $233.72.
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UPS attracts positive rating at Evercore ISI ahead of earnings