UBS Lowers Price Target for UPS, Keeps Buy Rating

United Parcel Service, Inc. (NYSE:UPS) is one of the 12 Best Logistics Stocks to Buy According to Hedge Funds. On July 2, UBS reduced its price target for United Parcel Service, Inc. (NYSE:UPS) from $128 to $124 and reiterated a “Buy” rating.

This decision reflects the investment firm’s expectation of increased pressure on United Parcel Service, Inc.’s (NYSE:UPS) International segment earnings. One of the reasons for this is that the de minimis exemption, a special tax exemption, will no longer apply to imports from China and Hong Kong.

UBS now projects that United Parcel Service, Inc.’s (NYSE:UPS) International earnings before interest and taxes (EBIT) could drop by over $200 million per quarter, from the second quarter to the fourth quarter of 2025, compared to the previous year.

The investment bank also lowered its forecast for United Parcel Service, Inc.’s (NYSE:UPS) Q2 2025 earnings per share (EPS) from $1.60 to $1.54. For the full year 2025, UBS cut the EPS forecast from $7.15 to $6.93.

United Parcel Service, Inc. (NYSE:UPS) is an American multinational company that specializes in shipping and receiving, logistics, and supply chain management.

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Disclosure: None. This article is originally published at Insider Monkey.