UPS price target raised by $12 at BofA, here’s why

BofA analyst Ken Hoexter raised the firm’s price target on UPS to $164 from $152 and keeps a Neutral rating on the shares after having hosted an investor meeting at UPS’ headquarters with the company’s CFO and members of the IR team. BofA believes peak season started off “solidly” and based on industry commentary that win backs were slower than expected the firm believes UPS’ Q4 domestic volumes are likely to trend to the low end of its target of down 3% to 8% year-over-year, the analyst tells investors. Given lower winbacks and macro pressures, the firm lowers its 2023 and 2024 EPS estimates by 2% each, but raised its multiple as UPS passes cycle trough.