BMO Capital analyst Fadi Chamoun downgraded UPS to Market Perform from Outperform with a price target of $123, down from $125. The analyst believes the company's path to improving its profitability and free cash flow is challenging. Strong volumes and efficiency gains could drive positive operating leverage, excluding the impact of pension, in the near-term for UPS, Chamoun tells investors in a research note. The analyst, however, has growing concerns that the "fast-growing shift" of business-to-consumer will limit its opportunity to improve operating margins in the U.S. Domestic operations over the medium term. Further, capital intensity and free cash flow, other key elements to the valuation of UPS, offer limited opportunity for improvement, adds the analyst.

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Unusual total active option classes on open include: ImmunityBio (IBRX), Halliburton (HAL), Redfin (RDFN), Nokia (NOK), Matterport (MTTR), General Motors (GM), UPS (UPS), Philip Morris (PM), PepsiCo (PEP), and General Electric (GE).

UPS says it is early in the process and will share progress on pension considerations when appropriate.

For 2024, UPS reaffirms its full-year, consolidated financial targets: Consolidated revenue to range from approximately $92.0 billion to $94.5 billion; Consolidated adjusted operating margin to range from approximately 10.0% to 10.6%; Capital expenditures of approximately $4.5 billion.