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On Wednesday, Loop Capital revised its price target for UPS (NYSE:UPS) shares, decreasing it to $105.00 from the previous $115.00, while keeping a Hold rating on the stock. Currently trading at $96.73, near its 52-week low of $90.55, UPS appears undervalued according to InvestingPro analysis. The adjustment followed UPS’s first-quarter earnings report, which was released before the market opened on April 29, 2025. The company surpassed earnings per share (EPS) expectations but indicated a potential downturn in the second quarter.
According to Loop Capital, UPS has experienced a decline in demand starting in April. The ongoing uncertainties in China are causing difficulties for customers’ planning processes, leading to a more cautious outlook. This challenging environment has contributed to the stock’s significant decline, with a 25.91% drop over the past six months. Despite these headwinds, UPS maintains a strong dividend yield of 6.78% and has maintained dividend payments for 27 consecutive years, as noted in InvestingPro’s analysis. Consequently, the firm has adjusted its estimates downward for UPS.
The analyst from Loop Capital highlighted that the lower demand and external uncertainties were significant factors in the decision to reduce the price target for UPS. The $10 decrease reflects these challenges and the impact they are anticipated to have on UPS’s financial performance in the near term.
UPS’s Q1 2025 earnings beat was overshadowed by the company’s own forecasts for the upcoming quarter, which have prompted Loop Capital to revise their expectations. Amidst a challenging global economic environment, the logistics giant is navigating through softening demand and planning paralysis due to the situation in China.
Loop Capital’s updated price target of $105 for UPS stock, down from $115, is now set against this backdrop of tempered expectations and market uncertainties. The Hold rating aligns with the broader analyst consensus, with targets ranging from $80 to $150. The Hold rating suggests that the investment firm advises investors to maintain their current position in the stock without increasing their holdings. For deeper insights into UPS’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers extensive financial metrics and expert analysis.
In other recent news, UPS reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.49, which exceeded analyst expectations of $1.44. The company’s revenue for the quarter reached $21.5 billion, slightly surpassing the forecast of $21.22 billion. Despite these positive earnings results, UPS has suspended its full-year outlook due to uncertainties in trade policies. In response to anticipated volume declines, particularly a projected 30% decrease in Amazon (NASDAQ:AMZN) volume during the latter half of 2025, UPS plans to reduce its workforce by 20,000 positions and close 73 facilities by the end of June. Analyst firm Stephens has reacted to these developments by lowering the price target for UPS stock to $101 from $110, maintaining an Equal Weight rating. The analyst cited the company’s second-quarter earnings guidance, which did not meet consensus expectations, as a factor in the revised outlook. UPS continues to focus on maintaining pricing discipline and expects an increase in domestic revenue per piece during the second quarter, although international profitability is projected to remain subdued.
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