---
title: "BUZZ-Street View: UPS needs to deliver on cost-cutting measures"
description: "United Parcel Service (UPS) reported second-quarter profits below expectations and did not provide annual revenue and margin forecasts. Analysts view UPS and FedEx as indicators of the global economy'"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/250801863.md"
published_at: "2025-07-30T12:59:24.000Z"
---

# BUZZ-Street View: UPS needs to deliver on cost-cutting measures

> United Parcel Service (UPS) reported second-quarter profits below expectations and did not provide annual revenue and margin forecasts. Analysts view UPS and FedEx as indicators of the global economy's health. Jefferies maintains a 'buy' rating with a price target of $115, focusing on long-term margin expansion. Morgan Stanley is 'underweight' with a target of $75, citing challenges in the quarter. TD Cowen holds at $101, warning of domestic margin risks, while J.P. Morgan remains 'neutral' at $96, noting impacts from China and small-package volume disruptions.

United Parcel Service (UPS.N) posted second-quarter profit below expectations and opted not to issue annual revenue and margin forecasts

The delivery giant, along with rival FedEx (FDX.N) , is seen as a bellwether for the health of the global economy due to its role serving clients across industries and geographies

Median PT of 32 brokerages covering the stock is $105 - LSEG data

### MACRO UNCERTAINTY, DE MINIMIS IMPACT TO REMAIN

Jefferies (“buy,” PT: $115) says despite the uncertain macro, co continues to execute on things under their control by focusing on long-term margin expansion and operational efficiency

Morgan Stanley (“underweight,” PT: $75) says while they had expected a challenging quarter, they were on the lookout for a pull forward of the co’s $3.5 bln cost savings plan, driving a results beat

“While the macro is choppy, UPS has more moving parts than most companies,” brokerage adds

TD Cowen (“hold,” PT: $101) says co is facing risks to domestic margin if it does not achieve buyout agreement targets with its Amazon phase-out slower than expected

J.P. Morgan (“neutral,” PT: $96) says with the impact from China being the biggest drop following the de minimis exemption removal disrupting small-package volume, longer tailwinds on domestic margins are expected

### Related Stocks

- [UPS.US - UPS](https://longbridge.com/en/quote/UPS.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.