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 Lowers Price Target for UPS, Keeps Buy Rating

A warehouse filled with boxes of parcels, symbolizing the companies reliable logistics services.

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.

While we acknowledge the potential of UPS as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now.

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