11:27 AM EDT, 10/25/2024 (MT Newswires) -- United Parcel Service ( UPS ) raised its Q4 margin target to 9.6% from 9.4%, demonstrating resilience despite a weaker economic backdrop, BofA Securities said in a note emailed Friday.

The company posted Q3 adjusted EPS of $1.76, up 12% year-over-year, exceeding both the firm's estimate of $1.60 and the Street's $1.63.

This was largely due to improved pricing strategies, disciplined cost management, and a notable increase in business-to-business volume, according to the note.

"These improvements offset a weaker than anticipated macro backdrop, as U.S. online sales slowed and U.S. manufacturing remains muted," BofA added.

The cost-cutting initiative includes the "Fit to Serve" program that will save $1 billion by cutting 12,000 management jobs in addition to closing 45 operation centers that will reduce capacity by 1 million average daily volume per day, the firm said.

BofA said that the company's domestic segment performed strongly and compensated for shortfalls in the international and supply chain solutions segments.

The brokerage increased its price objective on UPS's stock to $150 from $132 and reiterated its neutral rating.

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