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Investing.com - UBS lowered its price target on UPS (NYSE:UPS) to $124.00 from $128.00 on Wednesday, while maintaining a Buy rating on the package delivery giant. According to InvestingPro data, UPS currently trades at $104.99 with a P/E ratio of 15.21, while offering an attractive 6.28% dividend yield.
The price target reduction reflects UBS’s expectation of greater pressure on UPS’s International segment earnings, partly due to the loss of the de minimis exemption for imports from China and Hong Kong. Despite these challenges, UPS maintains strong fundamentals with an $88.8 billion market cap and has consistently paid dividends for 27 consecutive years.
UBS analyst Thomas Wadewitz noted that while precisely identifying the impact remains difficult, FedEx (NYSE:FDX)’s recent fiscal 2026 guidance, which pointed to a $170 million quarterly EBIT headwind, provides a framework for analysis.
The investment bank now models a decline of more than $200 million year-over-year in UPS’s International EBIT per quarter from the second through fourth quarters of 2025.
UBS reduced its second-quarter earnings per share estimate for UPS from $1.60 to $1.54, compared to consensus estimates of $1.58, and lowered its full-year 2025 EPS forecast to $6.93 from $7.15, versus consensus expectations of $7.03.
In other recent news, United Parcel Service (UPS) has been the focus of several significant developments. Bernstein analysts reiterated an Outperform rating with a price target of $133, emphasizing UPS’s strategic initiatives, including a planned volume reduction with Amazon (NASDAQ:AMZN) and cost-cutting measures. BMO Capital also maintained its Outperform rating, highlighting UPS’s profit improvement targets of $1 billion in 2025 and an additional $1 billion in 2026, driven by efficiency projects and strategic capital allocation. Goldman Sachs has kept a Buy rating on UPS, despite lowering short-term earnings projections due to concerns about international trade volumes and margins. The investment bank remains optimistic about UPS’s valuation and potential catalysts for growth.
Additionally, UPS announced the appointment of John Morikis to its Board of Directors, bringing extensive experience from his leadership role at Sherwin-Williams (NYSE:SHW). At the Annual Meeting of Shareholders, UPS elected twelve directors and approved executive compensation, while rejecting two shareholder proposals related to voting power and carbon-reduction commitments. These recent developments reflect UPS’s ongoing strategic efforts and the confidence of both analysts and shareholders in the company’s management and future plans.
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