United Parcel’s (UPS) UPS Healthcare has opened a new cold chain and packaging center in Louisville, Kentucky. The new facility, Cold Chain Packaging Center of Excellence, is part of the company’s ongoing strategy to expand its global footprint.
According to the company, it is the first U.S.-based logistics facility that provides reusable cold chain packaging options for customers, utilizing the entire life cycle of temperature-controlled packages. (See United Parcel stock charts on TipRanks)
The company said that the cold chain services market was anticipated to grow significantly over the next three years, up 24% by 2024. Thus, UPS Healthcare’s cold chain expertise is critical for the delivery of future medicines supporting the growing needs of customers.
The President of UPS Healthcare, Wes Wheeler, said, “With new facilities and capabilities, UPS Healthcare is better positioned to safely manage the growing number of temperature-sensitive biologic drugs, as well as cell and gene treatments currently in development.”
Wall Street’s Take
Evercore ISI analyst Duane Pfennigwerth initiated coverage on United Parcel with a Buy rating and a price target of $235 (10.9% upside potential).
Consensus among analysts is a Moderate Buy based on 8 Buys, 6 Holds and 1 Sell. The average United Parcel price target of $223.07 implies 5.3% upside potential to current levels.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into United Parcel’s performance.
The United Parcel website traffic record a 0.9% monthly decrease in visits in October against the same quarter last year. Meanwhile, year-to-date website traffic has grown 17.2%.