12:35 PM EDT, 03/26/2024 (MT Newswires) -- United Parcel Service ( UPS ) will likely set "better and bolder" three-year objectives, BofA Securities said in a note Tuesday, ahead of the company's investor day.

The company is hosting an investor day on Tuesday and is expected surpassing revenue and margin targets, but more details are awaited at the conference. UPS Chief Executive Carol Tome sees growth in small package market from 2024 and onwards, and a focus on premium markets and productivity.

Among the targets is a revenue of $108 billion to $114 billion in 2026, a 6% to 8% compound annual growth rate, compared with BofA's estimate of $105 billion in revenue. The company projects operating margin of 13% or higher, led by Domestic operations targeting 12% versus BofA's estimate of 10%.

"Quick math on mid-point revenues and margin targets could indicate an approximate $13.40 of EPS on UPS' targets vs. our $11.10 2026 EPS estimate, a 20% boost to our current estimate, if it hits its targets," BofA said.

BofA raised its price objective to $164 from $156 and reiterated its neutral rating. However, the investment firm plans to revisit the model after additional details from the investor day.

Price: 146.93, Change: -9.64, Percent Change: -6.16