UPS Shockwaves: UBS Slashes Target to $135 as Buyouts Signal Demand Crisis

Wall Street's favorite package handler just got a reality check.

UBS doesn't deliver optimism - cuts UPS target to $135 amid slowing demand. The logistics giant's buyout offers now look less like strategic pruning and more like panic pruning.

Here's the unpacked story:

• Bulls got rolled over: That $135 target screams 'we don't believe in the Santa rally anymore'

• Buyouts = Band-Aids: When growth slows, corporate playbook page 1 says 'cut costs' (page 2 says 'blame macro conditions')

• Volume vampires: E-commerce softness biting harder than expected

UPS trucks may still be brown, but the financials are looking decidedly red. Another case of 'great logistics, questionable stockastics' - because nothing delivers disappointment quite like Wall Street analysts.

UPS Offering Buyouts Amid Slowing Demand And UBS Price Target Cut

UPS offering buyouts comes as the Atlanta-based company executes massive operational changes to address slowing demand issues. The UBS price target reduction also reflects concerns about international business pressures affecting the shipping giant’s profitability right now.

UPS stated:

Union Opposition to UPS Driver Buyout Packages

The Teamsters union strongly opposes the UPS driver buyout packages, and they’re arguing these violate the 2023 contract requiring UPS to create an additional 22,500 jobs.

Sean O’Brien, Teamsters general president, said:

Delivery Driver Workforce Changes Target Savings

The delivery driver workforce changes aim to save over $1.2 billion annually through reduced operating hours and also facility closures. UPS offering buyouts alongside closing 73 facilities addresses the slowing demand challenges while the UBS price target cut reflects analyst concerns about international operations right now.