Wells Fargo has revised its outlook on United Parcel Service (UPS), lowering the company’s rating to Equal Weight from the previous Overweight status. In addition, the financial institution has adjusted the price target for UPS shares, reducing it to $98 from $120.
The decision reflects concerns over several factors impacting the parcel delivery sector. Wells Fargo noted that while it previously held a positive outlook on parcel pricing and the strategic reduction of distribution networks, the ability for UPS to navigate the reduced dependence on Amazon (AMZN, Financial) is proving more difficult amid a weakening economic environment.
Moreover, the firm expressed worries about potential volume reductions due to increased tariffs and the termination of the de minimis exemption, which could further impact shipping volumes. Similar challenges are noted for both UPS and FedEx (FDX) as they work to reconfigure their networks to adapt to these market shifts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 66 analysts, the average target price for Amazon.com Inc (AMZN, Financial) is $250.83 with a high estimate of $295.46 and a low estimate of $195.00. The average target implies an upside of 49.91% from the current price of $167.32. More detailed estimate data can be found on the Amazon.com Inc (AMZN) Forecast page.
Based on the consensus recommendation from 72 brokerage firms, Amazon.com Inc's (AMZN, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Amazon.com Inc (AMZN, Financial) in one year is $183.77, suggesting a upside of 9.83% from the current price of $167.32. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Amazon.com Inc (AMZN) Summary page.
