UPS downgraded to Underperform at BofA on de minimis impact

As previously reported, BofA downgraded UPS (UPS) to Underperform from Neutral with a price target of $83, down from $91, as the firm accounts for increased pressure on volume and costs following the end of U.S. de minimis exemptions. International Priority & Economy packages represent 16% of UPS’ revenue and the removal of the de minimis exemption is expected to result in a muted air peak season in 2025, according to the analyst, who lowered the firm’s Q3, 2025, and 2026 UPS EPS estimates 6%, 3%, and 4%, respectively.