Negative sentiment shift a concerning sign for UPS, says Morgan Stanley - InvestingChannel

Negative sentiment shift a concerning sign for UPS, says Morgan Stanley

Following recent media reports of service issues at UPS (UPS), Morgan Stanley analyst Ravi Shanker analyzed Google searches and online sentiment regarding the company and found a sharper than usual increase in negative sentiment regarding the brand, while finding similar to normal seasonal patterns for competitor FedEx (FDX). The analyst does not think higher volumes, which are the likely cause of the service issues, are necessarily a net positive, as the cost associated with moving the higher volumes could be a significant headwind and the issues could exacerbate any potential share loss headwinds also. Shanker, who concludes that it “could be a challenging quarter” for UPS, keeps an Underweight rating on the stock.