Analyst Thomas Wadewitz of UBS maintained a Buy rating on United Parcel, reducing the price target to $110.00.
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Thomas Wadewitz has given his Buy rating due to a combination of factors influencing United Parcel Service’s (UPS) current and future performance. Despite a decline in domestic volumes, UPS has shown resilience with stronger revenue per piece growth and effective cost management strategies. The company has been proactive in reducing its cost structure by removing several facilities from its network, which supports its earnings per share (EPS) projections for the third quarter.
Wadewitz acknowledges the challenges UPS faces, such as volume declines with key partners like Amazon and margin pressures from the insourcing of Surepost volumes. However, he notes that UPS is actively seeking solutions to these issues, which could improve its domestic margin performance. The valuation of UPS stock, trading at a price-to-earnings ratio of 13x based on the new 2026 EPS estimate, suggests that the market has already accounted for these ongoing challenges. Therefore, with a forward-looking approach and strategic cost management, Wadewitz maintains a positive outlook on UPS, justifying the Buy rating.
In another report released on September 25, Bernstein also maintained a Buy rating on the stock with a $133.00 price target.