Stephens cuts UPS stock price target to $101 from $110

Published 30/04/2025, 13:20
© Reuters.

Despite the lower volume forecast and the associated operational downsizing, UPS has demonstrated a commitment to maintaining pricing discipline. The company expects to see an increase in domestic revenue per piece (RPP) during the second quarter. However, international profitability, which was softer in the first quarter, is projected to remain subdued in the second quarter.The analyst’s commentary highlights the positive aspects of UPS’s strategy to manage capacity and maintain price discipline amidst the current challenges. Worth noting is UPS’s impressive 27-year track record of consistent dividend payments, currently offering a substantial 6.78% yield. The revised price target of $101 reflects the analyst’s recalibrated expectations following the latest earnings report and the company’s strategic response to the evolving market conditions. For deeper insights into UPS’s valuation and financial health metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.

Despite the lower volume forecast and the associated operational downsizing, UPS has demonstrated a commitment to maintaining pricing discipline. The company expects to see an increase in domestic revenue per piece (RPP) during the second quarter. However, international profitability, which was softer in the first quarter, is projected to remain subdued in the second quarter.The analyst’s commentary highlights the positive aspects of UPS’s strategy to manage capacity and maintain price discipline amidst the current challenges. Worth noting is UPS’s impressive 27-year track record of consistent dividend payments, currently offering a substantial 6.78% yield. The revised price target of $101 reflects the analyst’s recalibrated expectations following the latest earnings report and the company’s strategic response to the evolving market conditions. For deeper insights into UPS’s valuation and financial health metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.

Despite the lower volume forecast and the associated operational downsizing, UPS has demonstrated a commitment to maintaining pricing discipline. The company expects to see an increase in domestic revenue per piece (RPP) during the second quarter. However, international profitability, which was softer in the first quarter, is projected to remain subdued in the second quarter.

The analyst’s commentary highlights the positive aspects of UPS’s strategy to manage capacity and maintain price discipline amidst the current challenges. The revised price target of $101 reflects the analyst’s recalibrated expectations following the latest earnings report and the company’s strategic response to the evolving market conditions.

In other recent news, United Parcel Service Inc. (NYSE:UPS) reported its first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.49, above the forecasted $1.44. The company also exceeded revenue projections, reaching $21.5 billion compared to the anticipated $21.22 billion. Despite these positive results, UPS has suspended its full-year outlook due to trade uncertainties, specifically concerning tariffs and global supply chain shifts. The company announced significant cost-saving initiatives, including the largest network reconfiguration in its history, aiming to save $3.5 billion. UPS is reducing its dependency on Amazon (NASDAQ:AMZN) by more than 50% and plans to close 73 buildings by June. Additionally, UPS is expanding its healthcare capabilities with the acquisition of Ann Lower Healthcare Group, expected to close in the second half of 2025. Analyst firms have noted the company’s strategic focus on efficiency and healthcare logistics as key growth areas. These developments reflect UPS’s efforts to enhance operational efficiency and adaptability in a challenging market environment.

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