United Parcel Service, Inc. (NYSE:UPS) reported its Q4 results, with EPS of $3.59, which came in better than the Street estimate of $3.09. Revenue was $27.8 billion, slightly above the consensus estimate of $27.01 billion.

Analysts at Berenberg Bank provided their views on the company, highlighting the bullish tone of the new guidance (bringing forward mid-term targets by a year), despite uncertainties about the impact of inflationary pressures and the post-COVID-19 baseline for volumes.

According to the analysts, the company saw some cost pressures easing in Q4, contrary to expectation, with costs per package increasing by just 6.2% in the US, compared to 10.43% in Q3.

While pressures are likely to remain a key concern for investors in the coming year, the analysts believe the lack of union wage negotiation until early 2023 should provide some short-term insulation.

Furthermore, the analysts mentioned the quarterly dividend raise and $1 billion buyback announcement as additional positives.

The analysts raised their price target on the company’s shares to $200 from $180, while maintaining their hold rating.