J.P. Morgan analyst Brian Ossenbeck has maintained their neutral stance on UPS stock, giving a Hold rating on January 31.
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Brian Ossenbeck has given his Hold rating due to a combination of factors influencing United Parcel’s current strategy and future prospects. UPS is undergoing significant strategic shifts, including in-sourcing SurePost volume from the U.S. Postal Service and reducing Amazon’s volume in its network, which presents execution risks. Management is confident these changes will help achieve 2025 targets, but the complexity and scale of these transformations raise uncertainties.
While UPS plans to shed unprofitable Amazon volume to improve its mix and margins, the market remains skeptical about the profitability impact. Additionally, UPS is tackling stranded costs and leveraging its experience in adjusting networks for lower volumes, which entails financial risks. Although UPS’s capacity adjustments might support industry pricing, the company’s ability to manage these transitions efficiently is crucial, leading to the Hold recommendation.
In another report released on January 31, TD Cowen also assigned a Hold rating to the stock with a $117.00 price target.
Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UPS in relation to earlier this year.