UPS Gets Downgrade From Credit Suisse On Lower Guidance

MarketWatch Pulse

Analysts at Credit Suisse on Monday downgraded shares of United Parcel Service Inc. to neutral from outperform after the shipping company last week warned fourth-quarter and full-year results will be lower than it previously expected. "In light of the company's tempered 2015 guidance, and apparent strategic execution risk, we no longer see a compelling case to own shares of UPS," the analysts said in a note. After delivering packages late in 2013, UPS beefed up operations for peak holiday shipping days, but ran into lower-than-expected demand on non-peak days, resulting in higher costs. Shares of UPS have lost 10% so far this year, and gained 4% in the past 12 months. That compares to losses of 0.5% for the S&P 500 Index for this year, and gains of 14% in the last 12 months.

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