BofA downgrades UPS, says ‘costs not coming out fast enough’

BofA downgraded UPS (UPS) to Neutral from Outperform with a price target of $98, down from $115, citing a number of factors, including a larger-than-expected small-to-medium sized business volume deceleration due to tariff pressures, slower-than than anticipated cost takeout, an accelerating Amazon (AMZN) business glide-down and higher-than-expected Ground Saver costs. In addition to lowering the firm’s 2025 and 2026 EPS estimates by 4% and 9%, respectively, the analyst notes that the multiple drops a point given rising uncertainty and earnings pressure.