UPS Upgraded To Buy By Loop Capital Based On Valuation
2022.04.14 19:21
By Sam Boughedda
Investing.com — United Parcel Service (NYSE:UPS) initially rose Thursday after Loop Capital analyst Rick Paterson upgraded the shipping company’s shares to Buy from Hold.
The analyst reduced the firm’s price target on UPS to $243 from $250. UPS shares are down 12% in 2022, trading around the $188 level.
“Part of the upgrade is simply valuation, with the stock down to 14.7x NTM consensus P/E versus 3 and 5-year averages of 17.2x and 16.8x, respectively,” stated Paterson, adding that it is also the “lowest forward multiple since April 2020. It’s also a two year low on an EV/EBITDA basis.”
The analyst also pointed to the stocks pullback in recent months and the attractive dividend yield, which has risen to 3.2%.
After initially rising to a high of $191.29, UPS shares retraced and now trade 0.48% lower at just below $188 per share.
