United Parcel Service (UPS) is expected to report in-line results with market consensus amid positive pricing environment, UBS Securities said Friday in a note.

UBS analysts said they made "minor" adjustments to Q3 and Q4 forecasts following tweaks to package margin forecasts.

They are now in line with consensus on Q3 EPS of $1.63, down from prior $1.67. They forecast Q4 EPS of $2.70, versus $2.72 previously, and compared with consensus of $2.73.

The report said checks with the market pointed to expectations for a normal peak season lift to activity, a key factor for Q4 amid macro concerns, including fuel prices and higher interest rates.

Feedback from the company and FedEx (FDX) also pointed to a positive pricing environment, the note said.

UBS kept its buy rating with a price target of $124.

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