Bank of America Securities Downgrades United Parcel Service (UPS) to Sell, Reduces the PT

United Parcel Service, Inc. (NYSE:UPS) is one of the Top Large Cap Stocks to Buy At 52-Week Low. On September 11, Ken Hoexter from Bank of America Securities downgraded United Parcel Service, Inc. (NYSE:UPS) from Hold to Sell, while also reducing the price target from $91 to $83.

The analyst noted that the downgrade reflects increased pressure on the company’s volume and costs due to the end of US de minimis exemptions. He elaborated that the International Priority and Economy packages make up 16% of the company’s revenue. Therefore, the removal of the de minimis exemption is expected to reduce air shipment volumes during the 2025 peak season. The analyst expects this to weigh on the company’s earnings. As a result, Hoexter has cut the firm’s Q3, 2025, and 2026 EPS estimates by 6%, 3%, and 4%, respectively.

United Parcel Service, Inc. (NYSE:UPS) provides logistics and package delivery services worldwide across more than 200 countries.

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