UPS breaks higher after strong Citi call

|By:, SA News Editor

Citi upgrades UPS (UPS +0.6%) to Buy from Neutral on its view that earnings will improve in 2018 and beyond.

"A key to our call beyond our expectation for better growth is UPS's move to apply peak season surcharges," writes Citi analyst Christian Wetherbee.

"Our analysis shows $60-$100 million of incremental revenue and operating profit, yielding EPS accretion opportunity of about 3 to 5 percent," he adds.

Citi assigns a price target of $128 on UPS. $120.44 is the all-time high for UPS.