Piper Jaffray Overweight On UPS (UPS)

Piper Jaffray continues to be Overweight UPS UPS. In a note to clients, Piper Jaffray writes, "Hong Kong airport (second largest in the world) air cargo terminal operator Hactl December airfreight data indicated total tonnage growth reaccelerated y-o-y modestly, however, on a much more difficult comp (export's comparison 25pp harder) suggesting global airfreight demand continues to track ahead of expectations. Week 1 US rail intermodal volume growth, while remaining solid, continues to decelerate due to tougher comparisons. We believe the Intermodal rail market will likely benefit from accelerated TL market share gains beginning in 2011 due to TL market capacity tightness (likely underestimated). Investors looking for the best way to play the Transport recovery should buy shares of Overweight rated FDX, HUBG, JBHT, LSTR, ODFL, UPS, and WERN." Shares of UPS gained 30 cents yesterday to close at $72.25.