UPS price target lowered to $141 from $170 at UBS

UBS lowered the firm’s price target on UPS (UPS) to $141 from $170 and keeps a Buy rating on the shares. UPS’s actions to reduce their volume with Amazon (AMZN) by 50% and insource their Surepost business from the US Postal Service make sense from a multi-year perspective because they enable UPS to shift to a higher quality business mix, but they also cause a meaningful step up in uncertainty in the near-term because the sharp reduction in volume will take significant actions to reduce both fixed and variable costs, the analyst tells investors in a research note. In an effort to offset the reduction in volume and revenue with Amazon, UBS believes UPS is seeking to take out $2B in fixed and variable costs in 2025.