Why UNITED PARCEL SERVICE Inc, (NYSE :UPS) may reach to $ 102.15/105.52 ?

United Parcel Service, Inc. (NYSE:UPS) 96.55 +0.40 (0.42%)

Range	95.80 - 96.80	Div/yield	0.73/3.02
52 week	94.05 - 114.40	EPS	3.28
Open	96.10	Shares	702.06M
Vol / Avg.	0.00/2.96M	Beta	0.96
Mkt cap	86.75B	Inst. own	70%
P/E	29.44

United Parcel Service, Inc. is a package delivery company. The Company delivers packages each business day for 1.5 million shipping customers to 7.9 million consignees in over 220 countries and territories. The Company has three segments: the United States Domestic Package, International Package and Supply Chain & Freight. UPS’s global small package operations provide time-definite delivery services for express letters, documents, small packages and palletized freight via air and ground services. Additionally, it provides its customers with easy access to UPS, with over 154,000 domestic and international entry points including: 39,100 drop boxes; 2,100 customer centers; 4,700 independently owned and operated locations of The UPS Store worldwide; 6,700 Kiala locations; 12,400 authorized shipping outlets and commercial counters; 5,900 alliance locations; and 83,900 UPS drivers who can accept packages provided to them.

• . United Parcel Service, Inc. (NYSE:UPS) has announced that it is looking forward to invest a further $1.06 billion in the European region, with the aim to expand its fleet and operations. However, the investment tenure has not yet been disclosed.
• UPS has also been expanding its fleet. Last year, it announced to deploy 1,400 new delivery trucks in Europe to expand its fleet and parcel delivery operations.
•   Out of the total 1400 vehicles, UPS plans to buy 800 tractors with 12-liter engines and 600 package cars. The CNG systems in these vehicles will be provided by Agility fuel systems and Quantum Technologies. The main purpose of the increase in the fleet is to increase the company’s advanced fuel technologies by 30% and to have 5,000 vehicles worldwide.
• Last week the company announced that it will invest to purchase 319 CNG fuel systems from Quantum Fuel System Technologies that would be installed in its new truck.
• The company also announced last week that it will open 15 new CNG stations in Europe to support its expanding fleet. The new trucks and CNG stations are expected to begin operation by the end of fiscal year 2016 (FY16). Out of the total 15 new stations, UPS will build 12 stations at new locations and will upgrade three old stations.
• Quantum Fuel System Technologies Worldwide Inc. has signed a deal with United Parcel Service, Inc. (NYSE:UPS) to provide 319 fuel systems, which will be used in UPS heavy-duty CNG trucks. Through this technology, UPS will be able to operate its fleet with reduced fuel cost.
• Quantum Technologies will start the delivery of its Q-Cab and Q-Rail storage system to UPS by the middle of this year. Along with these, Quantum technologies will also deliver its newly launched next-generation back-of-cab storage system, which would provide more storage than any of the currently available back-of-cab storage systems. These systems will use lightweight technologies including the Q-Lite CNG storage tanks.
•  UPS has ordered 319 advanced fuel systems from Quantum Technologies out of the total 600 vehicles, but it has not disclosed any information regarding the purchase of CNG fuel systems.
•  Although UPS is benefiting from the reduction in crude oil prices, it plans to further reduce the cost of operations of its complete fleet. Being in the parcel-delivery service, cost of fuel is an important element that might alter its profitability.
•  The new UPS CNG trucks will be deployed in 15 different cities. The company is already operating eight CNG facilities in four different states.

Recommendation Trends

Current Month Last Month Two Months Ago Three Months Ago Strong Buy 7 7 8 8 Buy 2 1 5 5 Hold 20 21 16 16 Underperform 0 0 0 0 Sell 0 0 0 0

Price Target Summary

Mean Target:	106.13
Median Target:	105.00
High Target:	126.00
Low Target:	95.00
No. of Brokers:	23

Annual results		2012	2013	2014
Sales Million $	Released Forecast Spread	54 127 53 997 0,24%	55 438 55 678 -0,43%	58 232 58 099 0,23%
Net income Million $	Released Forecast Spread	807 4 138 -80%	4 372 4 402 -0,69%	3 032 3 853 -21%
EPS  $	Released Forecast Spread	0,83 4,29 -81%	4,61 4,66 -1,0%	3,28 4,01 -18%

Quarterly results	Q2 2014		Q3 2014	Q4 2014
Sales Million $	Released Forecast Spread	14 268 14 110 1,1%	14 290 14 199 0,64%	15 895 15 802 0,59%
Net income Million $	Released Forecast Spread	454 628 -28%	1 214 1 183 2,6%	453 942 -52%
EPS  $	Released Forecast Spread	0,49 0,67 -27%	1,32 1,29 2,7%	0,49 1,23 -60%

Period Ending	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Net Income	3,032,000	4,372,000	807,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation	1,923,000	1,867,000	1,858,000
Adjustments To Net Income	449,000	1,239,000	4,538,000
Changes In Accounts Receivables	(523,000)	(515,000)	(124,000)
Changes In Liabilities	699,000	494,000	246,000
Changes In Inventories	-	-	-
Changes In Other Operating Activities	146,000	(153,000)	(109,000)
Total Cash Flow From Operating Activities	5,726,000	7,304,000	7,216,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures	(2,328,000)	(2,065,000)	(2,153,000)
Investments	(375,000)	48,000	729,000
Other Cash flows from Investing Activities	(98,000)	(97,000)	89,000
Total Cash Flows From Investing Activities	(2,801,000)	(2,114,000)	(1,335,000)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid	(2,366,000)	(2,260,000)	(2,130,000)
Sale Purchase of Stock	(2,421,000)	(3,347,000)	(1,320,000)
Net Borrowings	(169,000)	(1,775,000)	1,729,000
Other Cash Flows from Financing Activities	(205,000)	(425,000)	(96,000)
Total Cash Flows From Financing Activities	(5,161,000)	(7,807,000)	(1,817,000)
Effect Of Exchange Rate Changes	(138,000)	(45,000)	229,000
Change In Cash and Cash Equivalents	(2,374,000)	(2,662,000)	4,293,000

We suggest buying UPS below $96 with risk below $93.50 first target should be $102.52/105.15 by end of 3rd quarter.