JPMorgan Cautious on United Parcel Service (UPS) Amid Expected Share Pullback

United Parcel Service, Inc. (NYSE:UPS) is one of the best undervalued wide moat stocks.

JPMorgan Cautious on United Parcel Service (UPS) Amid Expected Share Pullback

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On January 12, 2026, JPMorgan analyst Brian Ossenbeck raised the firm’s price target on United Parcel Service, Inc. (NYSE:UPS) from $97.00 to $99.00, while reiterating a ‘Neutral’ rating. The firm noted that overcapacity eased in the fourth quarter, thanks to industry enforcement actions. However, the firm says the recent share rally may not hold in the short term, with Q1 spot truckload rates expected to weaken seasonally. Accordingly, the firm expects investors to lock in gains, leading to a short-term pullback amid broader market uncertainty.

Meanwhile, on January 9, 2026, Bernstein analyst David Vernon upgraded United Parcel Service, Inc. (NYSE:UPS) to ‘Outperform’ with a $125.00 price target, describing dividend concerns as overblown.

The company’s shares declined roughly 20% in 2025, with the dividend yield reaching 6% and the payout ratio hitting roughly 98%. Still, Vernon remains confident, citing United Parcel Service, Inc. (NYSE:UPS)’s commitment to its dividend while reshaping operations to focus on higher-margin markets and reducing low-margin Amazon volume.

Meanwhile, analysts project EPS growth of 4% in 2026 and 11% in 2027, given that the execution goes as per the company’s strategic plan.

United Parcel Service, Inc. (NYSE:UPS) focuses on providing global package delivery and supply chain solutions across the U.S., international, and supply chain segments.

While we acknowledge the potential of UPS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UPS and that has 100x upside potential, check out our report about this cheapest AI stock.

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