UBS upgrades UPS to buy, says price hikes will help boost stock 30%

A driver for an independent contractor wears a protective mask while operating a delivery truck to delivery N95 respirator masks outside a United Parcel Service Inc. (UPS) Ground sorting facility in Louisville, Kentucky, U.S., on Monday, April 13, 2020.
Luke Sharrett | Bloomberg | Getty Images

(This story is for CNBC Pro subscribers only).

The ability to raise prices while cuttings costs should drive UPS' stock higher, UBS said in a note to clients Tuesday.

The investment firm raised its rating on the parcel carrier's stock to buy from neutral, saying its price increases for customers could be twice as high as normal in 2021.