Shares of United Parcel Service Inc. rallied Tuesday after analyst Amit Mehrotra at Deutsche Bank recommended investors buy, saying that concerns that a slowing economy and labor negotiations would weigh on the package-delivery giant have already been fully priced in. Basically, Mehrotra is taking a contrarian view, saying investors’ worries can actually provide a reason to be bullish. He raised his rating on UPS back to buy after downgrading it to hold exactly one year ago.
He also raised his stock-price target to $220 from $197, with the new target implying about 20% upside from current levels. “It’s easy to be neutral or negative on UPS in the current environment, but in our experience that’s exactly the time to get more positive, especially under the stewardship of the current management team,” Mehrotra wrote in a note to clients. Shares of UPS
climbed 2.3% in afternoon trading, putting the stock on track to close at a two-month high. It has now run up 15.7% since closing at a 21-month low of $159.14 on Oct. 7. Mehrotra said he believes Wall Street is “overly” focus …