JP Morgan Chase announced Monday that it had raised the rating on United Parcel Service (NYSE:UPS) stock from “neutral” to “overweight”, taking into account the positive influence that the company acquired the European second largest courier service company TNT Express. UPS previously announced it would acquire TNT at a price of $6.77 billion.
JP Morgan analyst saw the acquisition as the great victory of UPS, believed that this deal between the two companies is a good factor, and projected the company’s core domestic parcel business will see a growth trend.
JP Morgan also predicted that the transaction will promote substantial increase in earnings in 2013 and 2014, in addition, this is a good strategic factor for the company to expand business over the world.