How UPS’s Margin-Focused Overhaul and Higher Debt Will Impact United Parcel Service (UPS) Investors
UPS is undergoing a major restructuring, focusing on higher-margin healthcare and small-business clients while cutting costs and jobs. This shift aims to improve margins and maintain dividend continuity, potentially increasing net debt. Investors should consider the risks of execution missteps and cash flow strain. UPS projects $94.5 billion revenue and $7.1 billion earnings by 2028, with a fair value of $100.50, a 6% upside. Analysts suggest earnings could reach $8.0 billion by 2028, but competitive pressures may affect these assumptions.