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Investing.com - TD Cowen has reduced its price target on UPS (NYSE:UPS) to $101.00 from $107.00 while maintaining a Hold rating on the package delivery company’s stock. According to InvestingPro data, the stock is currently trading near its 52-week low of $90.55, with analyst targets ranging from $80 to $145.
The firm cited UPS’s second-quarter results, which were in line with Wall Street estimates, but noted that the company withdrew its financial guidance due to increased uncertainties in the global trade economy. Despite these challenges, UPS maintains strong fundamentals with a 7.22% dividend yield and has consistently paid dividends for 27 consecutive years, as revealed by InvestingPro’s comprehensive analysis.
TD Cowen pointed out that the Amazon (NASDAQ:AMZN) volume reduction is expected to accelerate in the second half of the year, while employee buyout agreements could challenge domestic margins in the near-to-medium term.
The research firm also highlighted that tariff uncertainties are causing a reshuffling of global trade patterns, which is challenging UPS’s most profitable shipping lanes.
Despite these headwinds, TD Cowen maintained its Hold rating on UPS stock while adjusting the price target downward to reflect the current operating environment.
In other recent news, United Parcel Service Inc. (UPS) reported its second-quarter earnings for 2025, showcasing a mixed financial performance. The company posted a diluted earnings per share of $1.55, slightly below the forecast of $1.57, but exceeded revenue expectations with $21.2 billion against an anticipated $20.8 billion. Despite the revenue beat, the earnings fell short of some analyst expectations, leading to concerns about broader market conditions and future guidance uncertainties.
BofA Securities downgraded UPS from Buy to Neutral, citing a larger-than-expected deceleration in small- to medium-sized business volume due to tariff pressures and slower-than-anticipated cost reduction efforts. Additionally, Evercore ISI lowered its price target for UPS to $97.00 from $103.00, while maintaining an "In Line" rating on the stock. This adjustment was made following UPS’s second-quarter adjusted earnings per share, which exceeded Evercore’s estimate but fell short of the average Street forecast. Despite revenue outperformance across all segments, the company reported an overall EBIT shortfall. These developments reflect ongoing challenges and market conditions affecting UPS.
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