The analyst firm also reduced its EPS estimates for the company through 2016. UPS is investing more in future growth according to Credit Suisse analysts Allison M. Landry, Daniel Schuster, and Kenneth Ryan.
The analysts noted that UPS lowered its own EPS estimates for 2014, writing that "The primary drivers of the downward revision are 1) an incremental $75 million in opex associated with peak season prep (up from prior $100m); 2) costs related to the handling of faster than expected volume growth across the portfolio; and 3) increased expense headwinds related to rail issues (which hurt Q2 by ~$25m)."
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Separately, TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED PARCEL SERVICE INC (UPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."