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Bank of America Downgrades UPS, FedEx Amid Cost Pressures

9/12/2025

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Summary

Story summary

Bank of America downgraded UPS and FedEx stocks due to the end of the U.S. de minimis exemption, affecting low-value package imports.
The exemption allowed duty-free entry for packages under $800, impacting 92% of U.S. cargo.
UPS and FedEx now face increased volume and cost pressures, with UPS's International Priority revenue at 16% and FedEx's at 17%.
UPS shares fell to $84.50 (down 33% this year), while FedEx shares closed at $228 (down 20%).
BofA set target prices at $83 for UPS and $240 for FedEx, both below analyst averages.

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Story summary

Bank of America downgraded UPS and FedEx stocks due to the end of the U.S. de minimis exemption, affecting low-value package imports.
The exemption allowed duty-free entry for packages under $800, impacting 92% of U.S. cargo.
UPS and FedEx now face increased volume and cost pressures, with UPS's International Priority revenue at 16% and FedEx's at 17%.
UPS shares fell to $84.50 (down 33% this year), while FedEx shares closed at $228 (down 20%).
BofA set target prices at $83 for UPS and $240 for FedEx, both below analyst averages.