Credit Suisse Increases Price Target on UPS to $85 (UPS)

Credit Suisse is out with its report on UPS UPS, raising its price target from $76 to $85. In a note to clients, Credit Suisse writes, "4Q10 EPS a Solid Beat: UPS earned adjusted EPS of $1.08/shr in the fourth quarter, topping our estimate ($1.03) and consensus ($1.05). The implied 4Q10 EPS guidance (based on actual full year guidance of $3.48 - $3.54) was $1.00 to $1.06/share. Our 12-month target price of $85 (from $76) is based on our DCF model, which assumes the company can generate $7.3 billion in EBIT in 2012 (or the equivalent of $4.87/shr), and that UPS can grow operating profit at 9% annually on a 3-to-5 year view. We maintain our Neutral rating." At the time of posting, shares of UPS were trading at $74.25, down 0.46% from Tuesday's close.