Sluggish Freight Demand Affected United Parcel's Q2 Earnings: Goldman Sachs
Portfolio Pulse from Shivani Kumaresan
Goldman Sachs analyst Jordan Alliger reiterated a Buy rating on United Parcel Service Inc (NYSE:UPS) with a price target of $176. UPS reported Q2 2024 EPS of $1.79, below estimates. Domestic margin was impacted by revenue per piece mix. Despite positive YOY domestic volumes, full-year guidance was lowered due to sluggish freight demand. The analyst expects profit inflection in 2H to support shares.
July 23, 2024 | 6:29 pm
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Goldman Sachs reiterated a Buy rating on UPS with a price target of $176. Q2 2024 EPS was $1.79, below estimates. Domestic margin was impacted by revenue per piece mix. Despite positive YOY domestic volumes, full-year guidance was lowered due to sluggish freight demand. The analyst expects profit inflection in 2H to support shares.
The news highlights a mixed outlook for UPS. While the Q2 EPS missed estimates and full-year guidance was lowered, the analyst maintains a Buy rating with a $176 price target, expecting a profit inflection in the second half of the year. This suggests a neutral short-term impact as the market digests the mixed signals.
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