Bank of America has downgraded UPS from hold to sell due to the end of the U.S. de minimis exemption, which now requires UPS to handle customs data and tariff collection on many low-value packages. This regulatory change increases administrative costs on UPS's highest-volume, lowest-margin parcel lanes, pressuring the company's cost structure despite stable demand. While UPS has pricing mechanisms like surcharges to offset these costs, the added compliance burden raises concerns about margin pressure and cash flow, leading to investor caution. The key factor to watch is whether UPS can implement customs surcharges without losing volume in the coming quarters.
UPS shares are trading at USD 92.61 on Pluang as of Sep 24, 2026 23:02 WIB, down 3.34% for the day. The stock's market cap stands at $81.52 billion with a dividend yield of 6.85%. Pluang order activity shows a slight majority of buyers at 55%, reflecting mixed investor sentiment amid regulatory concerns.
