Bernstein Raises UPS Price Target to $128 After Strong Q4 Beat

United Parcel Service, Inc. (NYSE:UPS) is included among the Dividend Champions, Contenders, and Challengers List: 15 Highest Yielding Stocks.

On January 28, David Vernon of Bernstein raised his terms proposal connected United Parcel Service, Inc. (NYSE:UPS) to $128 from $125. It reiterated an Outperform standing connected the stock. The steadfast said UPS delivered a precise beardown Q4 2025 show and issued 2026 guidance that was broadly successful enactment with expectations. Revenue came successful amended than anticipated, portion margins were weaker than expected. Bernstein argued that the spot of the Q4 beat, combined with wherever margins exited the year, should beryllium capable to equilibrium retired the softer borderline outlook.

A January 27 study from Reuters said UPS plans to chopped arsenic galore arsenic 30,000 jobs and adjacent different 24 facilities successful 2026. The institution described these moves arsenic portion of its ongoing effort to trim vulnerability to lower-margin deliveries tied to Amazon, arsenic it shifts its absorption toward much profitable parts of the business.

That strategy has been successful question for immoderate time. Early past year, UPS said it would accelerate plans to chopped backmost millions of Amazon deliveries, calling that measurement highly dilutive to margins. UPS and rivals specified arsenic FedEx person besides been navigating softer request crossed the broader transportation market.

In 2025, UPS eliminated 48,000 roles, offered buyouts to drivers, and closed 93 locations arsenic Amazon-related volumes continued to decline. The further cuts planned for 2026 are expected to travel chiefly done attrition and different circular of voluntary buyouts for full-time drivers. According to Chief Financial Officer Brian Dykes, the institution does not program to instrumentality layoffs.

United Parcel Service, Inc. (NYSE:UPS) provides integrated logistics services to customers successful much than 200 countries and territories. Its US Domestic Package concern includes a wide scope of aerial and crushed transportation services crossed the United States.

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