NEW YORK (TheStreet) -- Shares of United Parcel Service (UPS) are rising 1.17% to $101.84 in Friday's early morning trading after analysts at Goldman Sachs upgraded the company to "buy" from "neutral" and raised their price target to $119 from $101.
"In our view, the risk/reward proposition is skewed positively," analysts said. "The stock has declined 9% ytd and the valuation is below its long-term mean, implying limited downside risk, in our view."
This action comes after the Georgia-based package and delivery company reported strong first quarter results at the end of April. The company reported earnings per share of $1.12, a 14% increase over the prior year period. This exceeded analysts' consensus estimates by 3%.
Additionally, total reported revenue of $14 billion was up 1.4% over the same quarter last year.
"We expect UPS stock to outperform our Transportation coverage over the next 12 months," analysts added.
TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED PARCEL SERVICE INC (UPS) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including poor profit margins and relatively poor performance when compared with the S&P 500 during the past year."