UPS price target lowered to $158 from $164 at BofA

BofA lowered the firm’s price target on UPS to $158 from $164 and keeps a Neutral rating on the shares. UPS set “robust” three-year revenue and EBIT margin targets that were above the firm’s targets, but BofA notes that UPS has missed its multi-year targets set at its last few analyst meetings, thus the firm expects its outlook to “carry risk.” While its outlook “set a good stage, the wind was taken out” given the near-term EBIT shortfall, the need for a macro rebound to hit targets, and significant excess supply, the analyst pointed out, adding that the “coup de gras” was UPS noting Q1 EBIT would be down 40% year-over-year while reiterating its down 20%-30% EBIT target for the first half of the fiscal year. The “disappointing start highlights a rough path to targets,” the analyst added.