UPDATE: J.P. Morgan Color On UPS Target Increase

J.P. Morgan, which raised its PT on shares of United Parcel Service, Inc. UPS, is providing some color on the stock. “UPS's 1Q11 earnings report showed strong cost side performance and solid pricing which were key drivers of margin expansion and 25% EPS growth,” J.P. Morgan writes. “Domestic package volumes were soft down 0.5% y/y, but we do not view this as an issue because pricing and cost control are the primary drivers of UPS's margin expansion story. We are raising our EPS estimates and we continue to believe there is significant upside potential for UPS stock.” United Parcel Service closed Tuesday at $74.30.