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Investing.com - Stifel has reduced its price target on UPS (NYSE:UPS) to $109.00 from $120.00 while maintaining a Buy rating on the stock. The logistics giant, currently valued at $80.8 billion, trades at a P/E ratio of 14.23, and according to InvestingPro analysis, appears undervalued at current levels.
The firm cited UPS’s continued focus on executing its $3.5 billion cost-reduction plan and completing its pivot toward higher-margin volumes as key factors in its analysis.
Stifel expects third-quarter earnings per share of $1.32, reflecting modest sequential compression in U.S. domestic operations and relatively flat international results.
The research firm noted that "bumpy execution" has made the market skeptical and concerned about a potential dividend cut, which is putting "outsized pressure on valuation."
Weak global B2C volumes, Amazon drawdown, and elevated cost per piece remain headwinds through year-end, though Stifel highlighted potential progress in healthcare and SMB exposure growth, along with advancement on structural savings. For deeper insights into UPS’s financial health and growth prospects, including 10 exclusive ProTips, visit InvestingPro.
In other recent news, United Parcel Service Inc. (UPS) reported a robust performance for the third quarter of 2025, surpassing earnings expectations. The company achieved a diluted earnings per share (EPS) of $1.74, which was significantly higher than the forecasted $1.30, marking a surprise margin of 33.85%. Revenue also exceeded predictions, reaching $21.4 billion compared to the anticipated $20.84 billion. These results have led to a positive reaction in the market. The earnings announcement highlighted UPS’s ability to outperform analyst projections. Additionally, the strong financial results have attracted attention from various analyst firms. These developments underscore the company’s current financial health and operational strength.
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