UPS stock price target maintained at $118 by UBS amid cost-cutting progress

Investing.com - UBS maintained its Buy rating and $118.00 price target on UPS (NYSE:UPS) on Thursday, citing the company’s execution on planned network changes. The logistics giant, currently trading near its 52-week low at $87.47, has seen its stock decline 26.81% year-to-date, according to InvestingPro data.

UPS is actively implementing its strategy to offset reduced volumes from Amazon, including the shutdown of 74 terminals in the first half of 2025, according to UBS.

The logistics company remains on track to achieve its full-year target of reducing domestic operating headcount by 20,000 positions and cutting costs by $3.5 billion in 2025, UBS noted in its analysis.

Despite these positive developments, UPS continues to face several challenges, including an uncertain tariff environment, softness in the domestic parcel market, and cost pressures resulting from Surepost insourcing.

UBS indicated that improved visibility into future domestic margin performance remains a key factor for UPS, but cautioned that patience would likely be necessary as these changes take effect.

In other recent news, VerifyMe Inc’s subsidiary, PeriShip Global, LLC, has entered into significant agreements with United Parcel Service (UPS). These agreements include a UPS Digital Channel Program Agreement and a UPS Partner API Access Agreement, marking a pivotal development for VerifyMe. Meanwhile, UPS has been in the spotlight following its second-quarter earnings report. The company reported adjusted earnings per share of $1.55, slightly missing the consensus estimate of $1.56. Despite this, UPS managed favorable execution in its Domestic Package segment, according to UBS.

However, several firms have adjusted their price targets for UPS. Stifel lowered its target to $120 while maintaining a Buy rating, citing mixed second-quarter results. UBS also reduced its target to $118, maintaining a Buy rating due to peak season uncertainty. Oppenheimer decreased its target to $100, highlighting weak earnings, and Morgan Stanley further lowered its target to $75, expressing concerns over visibility. UPS has withdrawn its guidance for 2025, attributing this to market uncertainty.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.