J.P. Morgan Previews Earnings From UPS

J.P. Morgan Chase & Co. is out with a research report on UPS UPS previewing earnings from the company. It has an Overweight rating and a $90 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "Freight demand data in 2Q11 have generally been soft which leads us to believe that UPS is unlikely to show much growth in domestic package volumes in 2Q. However, FDX's May quarter results (4QF11) provide a positive read for pricing and the moderation in fuel prices in May and June should also provide support for UPS's 2Q. We are tweaking up our 2Q forecast as we expect the good news on pricing and cost performance to outweigh likely softness in volume performance. We expect a solid 2Q report and a positive outlook on pricing to support potential upside for UPS stock in the near term." Shares of UPS lost 28 cents on Friday to close at $73.08.