BUZZ-UPS rises after BofA upgrades to 'buy' on predicted recovery in 2025

Updates

Shares of United Parcel Service UPS.N rise 1.8% to $129.82 in afternoon trade

BofA Global Research raises UPS to "buy" from "neutral"

Brokerage sees a potential end to freight recession in 2025; says company's dynamic pricing model and cost cutting will also help

BofA says UPS launched more aggressive dynamic pricing in the fourth quarter, including raising rates for Chinese e-commerce sellers such as Temu and SHEIN

Last year, UPS warned that its network was flooded with slower, lower-profit shipments, which were causing a drag on its margins

"We expect UPS will face some resistance as it continues to attempt to recapture lost share and manage mix headwinds created by the surging volumes of e-commerce shippers including Temu" - analysts at J.P. Morgan

UPS is scheduled to report its Q4 earnings on Jan. 30

Eighteen of 31 brokerages rate the stock "buy" or higher, 10 "hold" and three "sell"; their median PT is $150, according to data compiled by LSEG

UPS shares fell 19.8% in 2024

(Reporting by Abhinav Parmar in Bengaluru)

((Abhinav.Parmar@thomsonreuters.com;))