Key insights
- Jefferies reiterates a Buy rating on UPS citing attractive valuation. The stock is undervalued with a 6.72% dividend yield. While Q1 is expected to be a trough, full-year guidance remains intact. UPS opened a new logistics center in Taiwan and reiterated its 2026 revenue guidance. However, Amazon's deal with USPS could reduce parcel volume for USPS by 20%.
Investing.com - Jefferies reiterated a Buy rating and $135 price target on UPS (NYSE:UPS) shares, citing attractive valuation metrics across the board. The stock currently trades at $97.57 with a P/E ratio of 14.79, and InvestingPro data suggests the company is undervalued, offering a compelling 6.72% dividend yield.
Analyst Stephanie Moore said the full-year guidance is expected to remain intact heading into the first quarter and is not the primary focus of investor debate.
The debate centers on the depth of the first-quarter trough, the pace of recovery in the second quarter, and whether the second-half trajectory has sufficient visibility given tariff and macro uncertainty, Moore said.
Jefferies adjusted its first-quarter and second-quarter cadence while full-year assumptions remain largely unchanged.
"With shares screening attractive on virtually every valuation metric, reiterate Buy and $135 PT," Moore said.
In other recent news, United Parcel Service (UPS) has opened a new $100 million logistics center in Taiwan, marking it as the largest facility in the Asia Pacific region. This development comes amid growing demand in the tech sector, with Applied Materials using the facility as a distribution center. Additionally, UPS management has reiterated its 2026 revenue guidance of $89.7 billion with a 9.6% adjusted operating margin. However, the company expects first-half 2026 revenues to remain flat year-over-year with approximately 7.5% adjusted margins, which is below consensus estimates. Raymond James has reiterated a Strong Buy rating on UPS stock with a $127 price target.
Amazon.com has announced a new agreement with the U.S. Postal Service for package deliveries, maintaining around 80% of its existing deliveries with USPS, which equates to over 1 billion packages annually. This deal signifies a 20% reduction in parcel volume for USPS. Meanwhile, global air cargo demand has risen by 11.2% in February 2026 compared to the same month in 2025, as reported by the International Air Transport Association. The increase in demand includes an 11.6% rise in international operations.
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