Analyst Ken Hoexter of Bank of America Securities reiterated a Buy rating on United Parcel, retaining the price target of $115.00.
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Ken Hoexter has given his Buy rating due to a combination of factors including the belief that UPS shares are currently trading at low valuation levels, which are expected to rise despite the current earnings pressure. The price objective remains at $115, based on a 15x target multiple applied to the 2026 earnings per share estimates, which reflects a trough multiple on nearly trough earnings. This suggests that there is potential for growth as the market conditions improve.
Additionally, although there are challenges such as the loss of de minimis international express volumes and a reduction in Amazon revenues, UPS is actively working to mitigate these impacts by cutting structural costs. The company’s international margin estimates have been adjusted to reflect these changes, yet the overall outlook remains positive. This strategic approach, combined with the current market valuation, supports the Buy recommendation.
In another report released on June 30, Goldman Sachs also reiterated a Buy rating on the stock with a $124.00 price target.