UPS: stock outperforms, BofA upgrades to buy

(CercleFinance.com) - UPS shares outperformed the rest of the US stock market on Wednesday morning, benefiting from a recommendation upgrade by Bank of America to 'buy'.


A few minutes after opening, shares in the American courier giant gained 1.3%, while the S&P 500 index advanced by around 0.2%.

BofA raised its recommendation from 'neutral' to 'buy' and maintained its price target of $150, citing the prospect of an 'inflection point' in the courier's business.

According to the investment bank, UPS should benefit from an improvement in economic conditions, its cost-cutting measures and the close attention it is paying to its rates.

The New York firm also anticipates a rebound in demand, and even an end to the recession that characterized the freight sector from this year onwards.

On the stock market, UPS shares have underperformed Wall Street recently, giving up around 13% over the last six months, while the S&P has appreciated by 5% in the meantime.

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