Morgan Stanley lowers UPS stock price target to $75 on visibility concerns

Published 29/07/2025, 22:42
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Investing.com - Morgan Stanley (NYSE:MS) lowered its price target on UPS (NYSE:UPS) to $75.00 from $80.00 on Tuesday, while maintaining an Underweight rating on the package delivery company’s stock. The stock, currently trading at $90.83, is hovering near its 52-week low of $90.55, having declined about 26% year-to-date.

The price target reduction follows UPS’s second-quarter results, which Morgan Stanley described as a "modest miss versus lowered expectations."

The investment bank identified the "extreme lack of visibility" heading into the second half of the year as a more significant concern than the quarterly results themselves.

Morgan Stanley noted that while macroeconomic conditions remain choppy, UPS faces more operational challenges than most companies in its coverage universe.

The firm warned that a lower exit rate of earnings per share this year would likely put pressure on normalized earnings per share as well.

In other recent news, United Parcel Service Inc. (UPS) has reported its second-quarter earnings for 2025, showcasing a mixed financial performance. The company posted a diluted earnings per share (EPS) of $1.55, which was slightly below the forecast of $1.57. However, UPS exceeded revenue expectations, bringing in $21.2 billion compared to the anticipated $20.8 billion. Despite the revenue outperformance, the company withdrew its financial guidance due to uncertainties in the global trade economy.

Analysts have responded to these developments with various adjustments. TD Cowen has lowered its price target for UPS to $101.00 from $107.00, maintaining a Hold rating. BofA Securities downgraded UPS from Buy to Neutral, reducing its price target to $98.00, citing concerns over small- to medium-sized business volume and slower-than-expected cost reduction efforts. Evercore ISI also adjusted its price target to $97.00 from $103.00, noting an overall EBIT shortfall despite revenue outperformance across all segments. These recent developments highlight ongoing challenges and analyst concerns surrounding UPS.

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