United Parcel Service Inc. : Head for european markets
Entry price | Target | Stop-loss | Potential |
---|
$79.5 |
$87.5 |
$77.5 |
+10.06% |
---|
The worldwide leader in package transportation, United Parcel Service, has officially acquired the Dutch mail group TNT Express for $6.18 billion.
This acquisition enables the group to strengthen its presence in Europe to compete more German DHL, the european leader. UPS realized a turnover of $53.1 billion in 2011. On the same year, TNT Express has reported a net loss of €270 million.
Thomson Reuters consensus continues to be extremely positive about the value with an average price target is set at USD 88.6, a potential appreciation of 10.75% compared to current price.
Technically, the UPS' stock displays a continuous increase since early December as the bullish trend on U.S. stock markets. The 50 and 20-days moving averages have supported this movement. Subsequently, the share has broken through the ceiling of its trading range and has crossed up the USD 79 resistance.
From this perspective, the most active buyers will take a long position on the USD 79.5. The objective will be the highest of 2004, USD 87.5. A stop-loss will be placed below USD 78.5.
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