Street View: UPS margin gains offsetting parcel demand drag

United Parcel Service delivered stronger-than-expected Q3 results on Tuesday, signaling early progress in its sweeping overhaul that included cutting 48,000 jobs this year, following several quarters of sluggish demand

Median PT of 31 brokerages covering the stock is $102.5 - data compiled by LSEG

NAVIGATING PARCEL POTHOLES WITH MARGIN MUSCLE

J.P.Morgan ("neutral", PT: $97) said UPS is weathering the storm better than expected, with cost cuts and pricing power helping offset volume declines. However, they cautioned long-term interest may be limited by parcel demand trends and Amazon exposure

Bernstein ("outperform", PT: $122) noted the company is proving that a smaller, more efficient network with higher-yielding volume can deliver better outcomes

Citigroup ("buy", PT: $120) added the solid beat and strong free cash flow should ease investor concerns and support the stock, especially as efficiency efforts continue to improve margins

Stifel ("buy", PT: $110) says, "With a beat and raise this quarter, and a healthier outlook for peak season than we'd been anticipating, we think we're past trough earnings, which should help to reassure those that feared looming dividend cuts"