Shares of logistics major UPS (NYSE:UPS) took a nearly 10% tumble yesterday after the company’s first-quarter numbers failed to impress the Street. The results highlighted challenging macroeconomic conditions, lower volumes, and weakening demand in the Asian region for the company.
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Additionally, UPS now expects sales and margins to hover at the lower end of its guidance. With yesterday’s correction, the stock is now back to levels last seen at the beginning of 2023 and is seeing multiple analyst re-ratings and price revisions.
UBS’ Thomas Wadewitz has reiterated a Buy rating on UPS while increasing the price target to $198 from $196. Wells Fargo’s Allison Poliniak too has reiterated a Buy on the stock while lowering the price target to $205 from the earlier $221.
Wolfe Research’s Scott Group has upgraded the stock to a Hold from a Sell without assigning it a price target. The analyst believes domestic pricing is “holding up well” for the company and the stock could see gyrations in the short term. At the same time, Scott feels the consolidation of FDX Ground and Express could be a positive for the company.
Overall, the Street has a $196.45 consensus price target on UPS, pointing to an 11.4% potential upside in the stock.
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