3 Analysts Cut Their Price Targets on UPS Stock. Here's Why It's a Buy.
In addition to bringing packages to customers' front doors this week, United Parcel Service (NYSE: UPS) delivered a business update to the market, including financial targets for the next three years. Investors, however, didn't take kindly to the news. Shares of UPS fell more than 8% on the day of the update from where they closed the day before. Wall Street is also unimpressed. Three analysts, in fact, slashed their price targets on UPS stock on Thursday.
But just because analysts have taken a bearish stance on the stock doesn't mean that forward-looking investors should do the same. In fact, now's a great time for patient investors to pick up shares of the logistics leader.
Of the three analysts who reduced their price targets, Helane Becker is the most skeptical. Becker, an analyst at TD Cowen, dropped her price target to $140 from $147. From UPS stock's closing price of $147.30, Becker's price target implies downside of about 5%. According to Thefly.com, Becker predicates her price target on the 2026 free cash flow that the company thinks it will generate -- $17 billion to $18 billion -- despite projecting revenue of $108 billion to $114 billion.
Source Fool.com
United Parcel Service Inc. Stock
We see a rather positive sentiment for United Parcel Service Inc. with 13 Buy predictions and 1 Sell predictions.
With a target price of 162 € there is a slightly positive potential of 18.06% for United Parcel Service Inc. compared to the current price of 137.22 €.
