UPS price target lowered to $133 from $150 at BofA

BofA lowered the firm’s price target on UPS (UPS) to $133 from $150 and keeps a Buy rating on the shares after the company announced that it agreed with Amazon (AMZN), which recently accounted for 11.8% of UPS’ revenues and 20% of UPS’ Domestic volumes, that Amazon would lower its volume contribution to UPS by more than 50% by the second half of 2026. UPS accelerated the removal of Amazon’s extremely low margin freight, per CEO Carol Tome, as the return on invested capital on the parcels does not justify the investment used, the analyst noted. The firm lowered its FY25 and FY26 EPS forecasts 11% each, to $7.85 and $8.90, respectively.