Bank of America Lowers UPS Price Target Due to Declining Package Volumes
Bank of America has lowered its price target for United Parcel Service (UPS) from $115 to $108, maintaining a 'Neutral' rating. The adjustment follows weaker-than-expected domestic package volumes and reduced earnings forecasts in the second quarter of 2026, largely attributed to an abrupt decline in Amazon-related shipments at the end of the period. The broker revised its revenue estimates for UPS downward, projecting $91.3 billion for full-year 2026 from a prior estimate of $92.5 billion and forecasting third-quarter revenues at $22.4 billion instead of $23.2 billion. Bank of America also reduced earnings per share (EPS) forecasts across multiple periods by small percentages, citing expected mid-single-digit declines in domestic package volumes for the remainder of 2026. The firm raised its forecast for below-the-line expenses due to a large cash payment made by UPS to Teamster drivers under an agreement covering approximately 7,500 separations. The valuation multiple used to determine the new price target was slightly reduced from 14 times earnings to 13.5 times.
Topics: Bank of America Earnings Estimates Package Volumes UPS