UPS Ends Estafeta Deal as BMO Downgrades Stock on Weak B2B Outlook

Overview

• UPS terminated its planned acquisition of Estafeta after not meeting all closing conditions and provided no specifics on what fell short.
• BMO Capital Markets lowered its rating to Hold from Buy and cut the price target to $96 from $125, pointing to a lack of B2B demand recovery and recession risk.
• UPS maintained FY2025 guidance for approximately $3.5 billion in capital expenditures and about $3.5 billion in expense reductions tied to network reconfiguration and Efficiency Reimagined.
• The company highlighted Q2 results as evidence of solid execution in a complex environment and said its strategic initiatives remain on track.
• Reporting notes the stock trades near a 52-week low, with the dividend yield cited at roughly 7.8%.