BMO Capital Markets Reduces Rating on United Parcel Service (UPS) Stock

Group 1 - United Parcel Service, Inc. (NYSE:UPS) is considered one of the best undervalued stocks according to Reddit, but BMO Capital Markets has downgraded its rating from "Buy" to "Hold" and reduced the price target from $125 to $96, citing a lack of demand recovery in the business-to-business segment [1][2] - The company's Q2 2025 results highlight the complexity of the market landscape and the strength of its execution, with expected capital expenditures of approximately $3.5 billion and anticipated expense reductions of $3.5 billion due to network reconfiguration and Efficiency Reimagined initiatives [2] - United Parcel Service, Inc. continues to make progress on its strategic initiatives, positioning itself for stronger long-term financial performance and enhanced competitive advantage [2] Group 2 - River Road Asset Management's Q4 2024 investor letter indicates that the portfolio held 29 positions, with a notable increase in the industrials sector by 736 basis points and a decrease in consumer discretionary by -276 basis points [3] - While acknowledging UPS's potential as an investment, River Road Asset Management believes that certain AI stocks present greater upside potential and carry less downside risk [3]