BUZZ-Citi sees upside for FedEx and UPS given fair multiples

Reuters11-12

** Citigroup raises PT for FedEx to $331 from $301 and lowers it for UPS to $158 from $162

** "We are 'Buy'-rated on both UPS and FDX, with UPS among our top picks on progress on cost-cuts, matching resources to volumes, and pushing pricing to offset mix shift," says Citi

** "We believe there's upside given what we view as reasonable multiples and through earnings," brokerage says

** However, it adds that risk of escalating price wars remain, particularly if peak season demand for capacity remains tepid

** Twenty-three of 33 brokerages rate FDX "buy" or higher; fifteen of 32 brokerages rate UPS "buy" or higher, 13 "hold" and 3 "sell"; their median PTs are $310 and $150, respectively - LSEG data

** YTD, FDX up 14.6% and UPS down 16.3%

(Reporting by Abhinav Parmar in Bengaluru)

((Abhinav.parmar@thomsonreuters.com))

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