Deutsche Bank Now Prefers FedEx Over UPS, Downgrades Latter To Hold

Deutsche Bank analyst Amit Mehrotra downgraded United Parcel Service, Inc. UPS to Hold from Buy and lowered the price target to $221 (an upside of 7.63%) from $253.

• Mehrotra mentions, after the 120% increase in shares since the upgrade to Buy 21 months ago, the stock's risk/reward is better balanced.
• The analyst now prefers FedEx Corp FDX over UPS, given the former's "severe" underperformance year-to-date and UPS's upcoming renegotiation with its union.
• The upcoming contract negotiation between UPS and the Teamsters "has potential to be the most tumultuous since the 15-day UPS work stoppage in 1997," Mehrotra contends.
• In September 2021, Deutsche Bank lowered FedEx's price target to $280 from $375 and maintained a Buy rating on the shares.
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• Price Action: UPS shares are trading lower by 0.29% at $204.70 and FDX higher by 1.20% at $241.00 during the pre-market session on Monday.