JPMorgan Cautious on United Parcel Service (UPS) Amid Expected Share Pullback

Core Viewpoint - United Parcel Service, Inc. (NYSE:UPS) is considered a potentially undervalued stock with a strong market position, but analysts have mixed views on its short-term performance due to market conditions and operational changes [1][2][4]. Group 1: Analyst Ratings and Price Targets - JPMorgan analyst Brian Ossenbeck raised the price target for UPS from $97.00 to $99.00 while maintaining a 'Neutral' rating, citing a potential short-term pullback due to expected seasonal weakness in Q1 spot truckload rates [2]. - Bernstein analyst David Vernon upgraded UPS to 'Outperform' with a price target of $125.00, arguing that concerns regarding dividends are overstated [3]. Group 2: Financial Performance and Projections - UPS shares fell approximately 20% in 2025, resulting in a dividend yield of 6% and a payout ratio of about 98% [4]. - Analysts forecast EPS growth of 4% in 2026 and 11% in 2027, contingent on the successful execution of the company's strategic plan [4]. Group 3: Company Operations - UPS focuses on global package delivery and supply chain solutions across various segments, including U.S. domestic, international, and supply chain operations [5].