
UPS (UPS) Stock Forecast & Price Target
UPS (UPS) Analyst Ratings
Bulls say
United Parcel Service (UPS) has demonstrated strong financial performance, highlighted by a 9.8% year-over-year increase in revenue per piece, supported by improvements in base rates, customer mix, and fuel surcharges. The company is experiencing robust international volume growth, particularly in Chinese exports, and is strategically targeting opportunities in the healthcare sector, which aligns with higher-margin services. Additionally, UPS's focus on cost containment and automation is anticipated to enhance operating margins, with expectations for double-digit margins in 2026 and sustained free cash flow growth that supports ongoing dividend increases.
Bears say
The analysis of United Parcel Service's (UPS) financial health indicates a troubling outlook, primarily due to a significant reduction in volumes from key client Amazon, which is expected to decline by 30% in the second half of the year and ultimately by 25% by fiscal year 2025. Additionally, domestic package revenues, which contribute 66% of total revenue, experienced a year-over-year decline of 2.6%, with average daily volumes plummeting by 12.3%, suggesting a weakening demand environment. Furthermore, UPS faces margin pressure, with projections indicating a decline in adjusted operating margins to between 11% and 11.5%, exacerbated by a highly volatile economic backdrop and uncertainties surrounding cost savings initiatives.
This aggregate rating is based on analysts' research of UPS and is not a guaranteed prediction by Public.com or investment advice.
UPS (UPS) Analyst Forecast & Price Prediction
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