United Parcel (UPS – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Jason Seidl from TD Cowen maintained a Hold rating on the stock and has a $107.00 price target.
Jason Seidl has given his Hold rating due to a combination of factors impacting United Parcel’s performance. Despite a strong first quarter where UPS exceeded market expectations in adjusted earnings per share, the company faces challenges in the upcoming second quarter. These challenges include macroeconomic pressures and margin constraints in both domestic and international markets.
Moreover, while there is a decline in high-yielding U.S. small and medium-sized businesses and China-U.S. shipments, the company’s strategic initiatives such as the China+1 strategy show potential but remain uncertain in supporting long-term average daily volume. Positive developments include UPS’s network plan and cost reduction efforts, which are on track, but the overall outlook remains cautious due to the anticipated decline in China-U.S. volumes and the associated margin pressures.
According to TipRanks, Seidl is a top 100 analyst with an average return of 18.9% and a 61.57% success rate. Seidl covers the Industrials sector, focusing on stocks such as Saia, TFI International, and Norfolk Southern.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $115.00 price target.