Jefferies Lifts UPS Price Target to $135; Market Cap Edge Over FedEx Shrinks
On March 3, Jefferies raised UPS’s price target to $135 from $130, reiterating a Buy rating and citing its capital-intensive logistics network as a “Heavy Assets with Low Obsolescence” exposure. UPS’s market value lead over FedEx narrowed to about $0.6 billion after shares dropped over 10% this week, marking the steepest weekly decline since August.
1. Jefferies Raises Price Target to $135
Jefferies lifted its UPS price target from $130 to $135 on March 3, reiterating a Buy rating and highlighting the company’s capital-intensive logistics network as a “Heavy Assets with Low Obsolescence” exposure that resists AI-driven disruption.
2. Steepest Weekly Stock Drop Since August
UPS shares fell more than 10% over the past week, marking their steepest weekly decline since August as rising labor costs and tensions from the US-Israeli war involving Iran weighed on investor sentiment.
3. Market Value Gap Narrows to Under $1 Billion
The company’s market valuation stood at about $88.35 billion versus FedEx’s $87.78 billion by Thursday’s close, shrinking UPS’s long-standing lead from roughly $135 billion at its 2022 peak to under $1 billion.