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

Group 1: Financial Performance and Analyst Ratings - Bernstein raised the price target for United Parcel Service, Inc. (UPS) to $128 from $125, maintaining an Outperform rating after a strong Q4 2025 performance [1] - UPS's Q4 revenue exceeded expectations, although margins were weaker than anticipated; Bernstein believes the strong revenue performance will help offset the softer margin outlook [1] Group 2: Job Cuts and Strategic Shifts - UPS plans to cut up to 30,000 jobs and close 24 facilities in 2026 as part of its strategy to reduce exposure to lower-margin deliveries associated with Amazon [2] - The company previously eliminated 48,000 roles and closed 93 locations in 2025 due to declining Amazon-related volumes, with future cuts expected mainly through attrition and voluntary buyouts [4] Group 3: Business Focus and Market Conditions - UPS is shifting its focus towards more profitable segments of its business, moving away from highly dilutive Amazon deliveries [3] - The company, along with competitors like FedEx, is navigating a period of softer demand in the broader delivery market [3]