Shares of United Parcel Service (UPS)  rose more than 3% in afternoon trading Monday following an upgrade to "Buy" from "Hold" at Deutsche Bank, with a price target of $135 from $125, equating to a 15% upside on a total return basis.

In its note, the bank said it's "applying a more stringent approach to stock selection in 2018- balancing the cyclical exuberance of near-term fundamentals with the structural realities of returns over a cycle."

Their upgrade "reflects secular, e-commerce growth opportunities and current valuation that we believe overly discounts a heightened investment cycle. Ultimately we see two turns of additional multiple expansion opportunity for UPS on 2019 earnings, which together with 3% dividend yield implies double-digit return potential (equating to $15B of incremental equity value creation)."

More of What's Trending on TheStreet:

More from Stocks

Starbucks Stock Performance in 2018: -12%

Starbucks Stock Performance in 2018: -12%

Burger King Issues Apology After Massive World Cup Promotional Fail

Burger King Issues Apology After Massive World Cup Promotional Fail

The Winners and Losers in Thursday's Market

The Winners and Losers in Thursday's Market

Stocks Tumble as Dow Heads for Eighth Straight Drop

Stocks Tumble as Dow Heads for Eighth Straight Drop

Tesla Received Tip That Former Employee Was Going to 'Shoot the Place Up'

Tesla Received Tip That Former Employee Was Going to 'Shoot the Place Up'