1 Wall Street Analyst Thinks UPS Stock Is Going to $135. Is It a Buy at Around $95?

Analyst Fadi Chamoun at BMO Capital recently lowered his price target for UPS (NYSE: UPS) stock to $125 from $130 but maintained an outperform rating on the stock. Even though the analyst lowered the price target, it still represents a 29% premium to the current price, and an outperform is de facto a buy recommendation.The analyst's reasoning makes perfect sense. On the plus side, UPS' first-quarter earnings were above expectations, and management's ongoing reduction of lower- or no-margin Amazon.com delivery volume, while investing in growing higher-margin volume, is a long-term benefit as well. Furthermore, management expects to take $3.5 billion out of expenses due to its ongoing efficiency initiatives and the reduction in Amazon volume.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool