UBS Downgrades UPS (UPS) to Neutral, 'Long Wait for Improvement'

UBS analyst Thomas Wadewitz downgraded UPS (NYSE: UPS) from Buy to Neutral with a price target of $185.00 (from $198.00).

The analyst comments "The combination of a greater than expected decline in Domestic Package volumes (-12% in June and -11% in July) and clear visibility to significant year 1 Teamster contract cost pressures (we estimate 6% - 8%) create a backdrop of pressure on UPS's Domestic Package margin which is likely to extend through 2Q24. Domestic Package margin is the greatest lever for UPS's EPS performance and we also view it as a primary driver for the stock price. While the bar reset is probably healthy for UPS stock, considering what appears likely to be a lengthy wait for margin improvement, we are downgrading UPS from Buy to Neutral."

For an analyst ratings summary and ratings history on UPS click here. For more ratings news on UPS click here.

Shares of UPS closed at $180.55 yesterday.

You May Also Be Interested In

• JPMorgan Downgrades ASX Limited (ASX:AU) (ASXFY) to Neutral
• HSBC Upgrades Gujarat Pipavav Port Ltd. (GPPV:IN) to Hold
• Nomura/Instinet Upgrades Genting Singapore (GENS:SP) (GIGNY) to Neutral