UPS upgraded to Outperform at Wolfe Research on expected margin inflection

Wolfe Research upgraded UPS (UPS) to Outperform from Peer Perform with a $147 price target. The stock has materially lagged FedEx (FDX), the broader Transport Index and the S&P 500 over the past two and a half years as U.S. package margins have declined materially, but the firm expects U.S. margins to inflect positive year-over-year in calendar 2025, which “historically leads to much better performance for the stock,” the analyst tells investors.