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Sunday, July 3, 2022

Deutsche Bank Now Prefers FedEx Over UPS, Downgrades Latter To Hold – Fedex Corp. (FDX), United Parcel Service (UPS)

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Deutsche Bank analyst Amit Mehrotra downgraded United Parcel Service, Inc. (NYSE:UPS) to Hold from Buy and lowered the price target to $221 (an upside of 7.63%) from $253.

  • Mehrotra mentions, after the 120% increase in shares since the upgrade to Buy 21 months ago, the stock’s risk/reward is better balanced.
  • The analyst now prefers FedEx Corp (NYSE:FDX) over UPS, given the former’s “severe” underperformance year-to-date and UPS’s upcoming renegotiation with its union.
  • The upcoming contract negotiation between UPS and the Teamsters “has potential to be the most tumultuous since the 15-day UPS work stoppage in 1997,” Mehrotra contends.
  • In September 2021, Deutsche Bank lowered FedEx’s price target to $280 from $375 and maintained a Buy rating on the shares.
  • Also read, Low Teamsters Election Turnout May Not Be What it Seems.
  • Price Action: UPS shares are trading lower by 0.29% at $204.70 and FDX higher by 1.20% at $241.00 during the pre-market session on Monday.
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