BUZZ-Stephens resumes coverage on UPS and FedEx with 'EW' and 'OW' ratings respectively

Reuters04-09

** Stephens resumes coverage of parcel delivery firms United Parcel Service and FedEx , rating the co's "equal-weight" and "overweight", respectively

** Sets PT for UPS at $160 and FedEx at $325

** "While we expect the parcel market to grow low-single digits in the coming years, near-term visibility into accelerated volume growth is relatively limited" - Stephens

** "The company's growth into healthcare and more premium freight gives us confidence in the RPP outlook, but we believe the volume outlook is harder to underwrite," brokerage said of UPS

** "FDX has retained its market share gains from last year, and we believe the speed/service advantages make it likely FDX retains this business through calendar 2024," brokerage added

** Shares of UPS were up 0.3% while FDX was down 0.4%

** 12 of 31 brokerages rate UPS "buy" or higher, 17 "hold" and 2 "sell"; their median PT is $159

** 22 of 32 brokerages rate FDX "buy" or higher, 8 "hold" and 2 "sell"; their median PT is $320

** YTD, UPS down 4.4%; FDX up 8.3%

(Reporting by Abhinav Parmar in Bengaluru)

((Abhinav.parmar@thomsonreuters.com))

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