Bernstein Raises UPS Price Target to $128 After Strong Q4 Beat

United Parcel Service, Inc. (NYSE:UPS) is included among the Dividend Champions, Contenders, and Challengers List: 15 Highest Yielding Stocks.

On January 28, David Vernon of Bernstein raised his price recommendation on United Parcel Service, Inc. (NYSE:UPS) to $128 from $125. It reiterated an Outperform rating on the stock. The firm said UPS delivered a very strong Q4 2025 performance and issued 2026 guidance that was broadly in line with expectations. Revenue came in better than anticipated, while margins were weaker than expected. Bernstein argued that the strength of the Q4 beat, combined with where margins exited the year, should be enough to balance out the softer margin outlook.

A January 27 report from Reuters said UPS plans to cut as many as 30,000 jobs and close another 24 facilities in 2026. The company described these moves as part of its ongoing effort to reduce exposure to lower-margin deliveries tied to Amazon, as it shifts its focus toward more profitable parts of the business.

That strategy has been in motion for some time. Early last year, UPS said it would accelerate plans to cut back millions of Amazon deliveries, calling that volume highly dilutive to margins. UPS and rivals such as FedEx have also been navigating softer demand across the broader delivery market.

In 2025, UPS eliminated 48,000 roles, offered buyouts to drivers, and closed 93 locations as Amazon-related volumes continued to decline. The additional cuts planned for 2026 are expected to come mainly through attrition and another round of voluntary buyouts for full-time drivers. According to Chief Financial Officer Brian Dykes, the company does not plan to implement layoffs.

United Parcel Service, Inc. (NYSE:UPS) provides integrated logistics services to customers in more than 200 countries and territories. Its US Domestic Package business includes a wide range of air and ground delivery services across the United States.

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