Stocks
UPS Stock Tumbles Amid Disagreement Over Post-Amazon Recovery
United Parcel Service (UPS) stock dipped to $94.75 on September 21 after Bank of America reduced its price target from $115 to $108, citing a sharper-than-expected drop in Amazon package volumes at the end of the second quarter.
The bank expects domestic package volumes to fall by a mid-single-digit percentage in the second half due to the sudden reduction in Amazon packages. This led BofA analyst Ken Hoexter to trim his full-year revenue estimate to about $91.3 billion and set the $108 target at 13.5 times 2027 earnings.
However, Goldman Sachs disagrees with Bank of America's pessimistic view. The investment bank maintains a Buy rating and a $132 target for UPS, citing its post-Amazon reconfiguration as a positive development.