Piper Jaffray Overweight on UPS

Piper Jaffray is out with a research report on UPS UPS and it has an Overweight rating and a $88 price target on shares. In a note to clients, Piper Jaffray writes, "Yesterday AAPL officially announced its new iPhone 4S set to launch 10/14/11. We believe the later timing of the launch this year combined with pent up demand (prior and new phone carriers now offering iPhone), shifts a roughly estimated 2.0M-4.0M units to be shipped via air cargo providers during 4Q11. Combined with AMZN's previously announced launch of its Kindle Fire tablet, lean U.S. inventories across most verticals, and a lackluster ocean shipping season thus far that likely hasn't beefed up Freight levels ahead of the holidays, we believe 4Q11 is setting up for potentially better than expected air cargo demand versus current lower end expectations. We see FDX and UPS as the biggest beneficiaries in this environment, and, to a lesser extent, Freight Forwarders EXPD and UTIW." Shares of UPS gained $1.84 yesterday to close at $64.06.