UPS Stock Has 32% Upside, According to 1 Wall Street Analyst
A Citigroup analyst recently lowered the company's price target on United Parcel Service (NYSE: UPS) stock from $158 to $149 and maintained a buy rating on it. The price target cut isn't great news, but it still represents a 32% premium to the current price, indicating that the recent sell-off is a buying opportunity.Here's why.The stock sold off after the fourth-quarter earnings presentation at the end of January. There was nothing wrong with the numbers, but the market took exception to the announcement that UPS had agreed with its largest customer, Amazon (NASDAQ: AMZN), to reduce deliveries for the e-commerce giant by at least 50% by the second half of 2026. Amazon deliveries accounted for 11.8% of UPS revenue in 2024. Continue reading
A Citigroup analyst recently lowered the company's price target on United Parcel Service (NYSE: UPS) stock from $158 to $149 and maintained a buy rating on it. The price target cut isn't great news, but it still represents a 32% premium to the current price, indicating that the recent sell-off is a buying opportunity.
Here's why.
The stock sold off after the fourth-quarter earnings presentation at the end of January. There was nothing wrong with the numbers, but the market took exception to the announcement that UPS had agreed with its largest customer, Amazon (NASDAQ: AMZN), to reduce deliveries for the e-commerce giant by at least 50% by the second half of 2026. Amazon deliveries accounted for 11.8% of UPS revenue in 2024.
