Bulletin
Investor Alert

London Markets Open in:

Market Pulse Archives

April 9, 2020, 12:07 p.m. EDT

UPS downgraded by UBS on loss of higher-margin business

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    United Parcel Service Inc. Cl B (UPS)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Claudia Assis

Analysts at UBS on Thursday downgraded their rating on United Parcel Service Inc. /zigman2/quotes/201245396/composite UPS -0.01% stock to neutral from buy, saying that headwinds from the economic collapse caused by the coronavirus pandemic are likely to cancel out the uptick in ecommerce-related deliveries. "We expect the impact of COVID-19 to drive a sharp reduction in (business-to-business) volumes with the most notable decline in UPS's highest-margin customer group of small and mid-sized businesses," the analysts said. That sharp decline in higher-margin business from small and mid-sized businesses plus the growth in business-to-consumer deliveries "could exert a significant mix/margin headwind," the analysts said. Shares of UPS have lost about 13% in the past 12 months, compared with losses around 3% for the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.48%

/zigman2/quotes/201245396/composite
US : U.S.: NYSE
$ 99.71
-0.01 -0.01%
Volume: 5.96M
May 29, 2020 4:00p
P/E Ratio
20.18
Dividend Yield
4.05%
Market Cap
$85.97 billion
Rev. per Employee
$149,503
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,044.31
+14.58 +0.48%
Volume: 4.38B
May 29, 2020 5:14p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.