2023-04-26 07:32:08 ET
United Parcel Service ( NYSE: UPS ) was upgraded to a Hold-equivalent at Wolfe Research following the largest one day drop for the stock in 17 years.
Equity analyst Scott Group stepped away from a previous bearish rating given the steep drop on Tuesday given the tumble places the stock below his prior price target of $186. Group withdrew his price target however.
“UPS is facing a bad combination right now of a weak macro, share losses ahead of the Teamsters contract, and the normalization of SCS and Int'l earnings. That said, domestic parcel pricing is holding up well, and we think buybacks can re-accelerate after a Teamsters deal,” he told clients. “The upcoming consolidation of FDX Ground and Express should also be positive for UPS over time. We think the stock could be volatile in the near term around Teamsters' news flow, but with UPS at 16.6x our reduced C23 EPS estimate and below our prior target price, we're moving to the sidelines and raising our rating to Peer Perform.”
Shares of UPS trended flat in premarket action. Read more on the details of the earnings release .
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UPS upgraded at Wolfe Research after post-earnings plunge