UBS raised the firm’s price target on UPS (UPS) to $125 from $116 and keeps a Buy rating on the shares. UPS flagged near-term margin pressure from lower Amazon (AMZN) volumes, Ground Saver shifts to USPS, and higher aircraft lease costs, prompting a reduced Q1 earnings outlook, the analyst tells investors in a research note. These headwinds are expected to fade through 2026, setting up meaningful year-over-year margin improvement in the domestic package business in the second half, the firm says.
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