BMO Capital Markets Increases United Parcel Service (NYSE:UPS) Price Target to $115.00

Key Points

• BMO Capital Markets raised its UPS price target from $110 to $115 while maintaining a “market perform” rating, implying approximately 10% upside from the prior close.
• UPS exceeded second-quarter expectations with $22.83 billion in revenue and $1.76 in adjusted EPS, prompting the company to raise its 2026 outlook to about $91.2 billion in revenue and $7.22 in adjusted EPS.
• Despite the strong adjusted results, investors remain cautious because package volume declined as UPS reduced lower-margin Amazon deliveries, while transformation charges, weaker international profitability and competitive pressures weighed on reported earnings and margins.

United Parcel Service (NYSE:UPS - Get Free Report) had its price target boosted by equities researchers at BMO Capital Markets from $110.00 to $115.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has a "market perform" rating on the transportation company's stock. BMO Capital Markets' price objective points to a potential upside of 9.97% from the stock's previous close.

Several other equities analysts have also recently weighed in on UPS. Evercore lowered their price objective on shares of United Parcel Service from $115.00 to $113.00 and set an "in-line" rating on the stock in a research report on Wednesday, April 22nd. Susquehanna increased their price target on shares of United Parcel Service from $116.00 to $118.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Stephens upgraded shares of United Parcel Service to a "strong-buy" rating in a report on Wednesday, July 8th. UBS Group lowered their price objective on shares of United Parcel Service from $125.00 to $123.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Finally, Citizens Jmp assumed coverage on shares of United Parcel Service in a research note on Wednesday, July 15th. They issued a "market perform" rating on the stock. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, United Parcel Service has an average rating of "Hold" and an average target price of $111.75.

United Parcel Service Price Performance

Shares of UPS traded down $0.96 during mid-day trading on Wednesday, hitting $104.57. The company's stock had a trading volume of 1,054,743 shares, compared to its average volume of 5,959,333. United Parcel Service has a fifty-two week low of $82.00 and a fifty-two week high of $122.41. The stock has a market capitalization of $88.89 billion, a price-to-earnings ratio of 16.95, a PEG ratio of 1.80 and a beta of 1.05. The firm has a 50-day moving average price of $108.80 and a 200 day moving average price of $106.71. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.21 and a quick ratio of 1.21.

United Parcel Service (NYSE:UPS - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The transportation company reported $1.76 earnings per share for the quarter, topping the consensus estimate of $1.65 by $0.11. United Parcel Service had a return on equity of 35.95% and a net margin of 5.94%.The business had revenue of $22.83 billion during the quarter, compared to analyst estimates of $21.86 billion. During the same period last year, the company posted $1.55 EPS. The company's revenue was up 7.6% compared to the same quarter last year. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS. On average, research analysts predict that United Parcel Service will post 7.1 EPS for the current fiscal year.

Institutional Investors Weigh In On United Parcel Service

Several institutional investors and hedge funds have recently made changes to their positions in UPS. Potomac Fund Management Inc. ADV lifted its holdings in United Parcel Service by 0.8% during the 4th quarter. Potomac Fund Management Inc. ADV now owns 11,324 shares of the transportation company's stock worth $1,123,000 after buying an additional 90 shares in the last quarter. Westbourne Investments Inc. boosted its stake in shares of United Parcel Service by 1.2% in the 4th quarter. Westbourne Investments Inc. now owns 7,876 shares of the transportation company's stock valued at $781,000 after purchasing an additional 91 shares during the last quarter. Ipsen Advisor Group LLC grew its position in shares of United Parcel Service by 1.7% during the 4th quarter. Ipsen Advisor Group LLC now owns 5,670 shares of the transportation company's stock worth $562,000 after buying an additional 95 shares during the period. Webster Bank N. A. grew its position in shares of United Parcel Service by 16.7% during the 4th quarter. Webster Bank N. A. now owns 698 shares of the transportation company's stock worth $69,000 after buying an additional 100 shares during the period. Finally, Peoples Financial Services CORP. raised its stake in shares of United Parcel Service by 2.5% during the fourth quarter. Peoples Financial Services CORP. now owns 4,030 shares of the transportation company's stock worth $400,000 after buying an additional 100 shares during the last quarter. Institutional investors and hedge funds own 60.26% of the company's stock.

Key Stories Impacting United Parcel Service

Here are the key news stories impacting United Parcel Service this week:

• Positive Sentiment: UPS reported second-quarter revenue of $22.83 billion and adjusted earnings of $1.76 per share, exceeding analyst expectations of approximately $21.86 billion and $1.65 per share. Revenue increased 7.6% year over year. UPS beats earnings expectations, raises full-year guidance
• Positive Sentiment: The company raised its full-year 2026 outlook to approximately $91.2 billion in revenue and $7.22 in adjusted EPS, above consensus estimates of $90.0 billion and $7.12, respectively. Pricing, segment growth and network efficiencies supported the improved forecast. UPS Q2 Earnings Beat as Pricing and Segment Growth Accelerate
• Positive Sentiment: Management said the planned reduction, or “glide down,” of lower-margin Amazon deliveries is largely complete. UPS is attempting to replace volume with more profitable shipments and efficiency gains, which could improve margins over time. Less Amazon, more profit
• Neutral Sentiment: U.S. average daily package volume fell 3.3% year over year as UPS intentionally removed lower-yield Amazon business. The strategy may benefit profitability, but it leaves investors watching whether higher-margin growth can offset lost volume. UPS Is Shrinking Package Volume and Making Money With Visibility
• Negative Sentiment: Profitability was weaker on a reported basis: consolidated operating profit was $930 million versus $2.1 billion on an adjusted basis, while $891 million of after-tax transformation charges reduced GAAP EPS to $0.71. Investors remain concerned about restructuring costs and the pace of margin recovery. UPS Releases 2Q 2026 Earnings
• Negative Sentiment: Wall Street remains cautious about lower near-term domestic expectations, declining package volumes, weaker international operating profit and elevated fuel costs. Those concerns overshadowed the earnings and guidance beats. UPS raises 2026 outlook after second quarter results exceed expectations
• Negative Sentiment: The broader last-mile delivery market is becoming more competitive as retailers diversify beyond UPS, FedEx and the Postal Service to meet faster free-delivery expectations. That trend could pressure UPS’s pricing power and long-term volume growth. Carrier diversification unravels the last-mile delivery duopoly

United Parcel Service Company Profile

United Parcel Service NYSE: UPS is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.

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