UPS Stock: Citi Trims Price Target To $122 Ahead Of Q3 Earnings, Maintains 'Buy'

• Citi said higher fuel prices and rising interest rates could keep investors cautious across the transportation sector, according to The Fly.
• The brokerage also revised targets on Union Pacific, J.B. Hunt, FedEx, Werner and TFI International as part of its broader Q3 preview.
• The company introduced Protected Delivery and plans to hire 100,000 seasonal workers for the holiday shipping period.

United Parcel Service Inc.'s (UPS) stock was in focus on Wednesday after Citi lowered its price target to $122 from $132 while maintaining a 'Buy' rating ahead of its October 27 third-quarter earnings report 

The Fly reported that Citi adjusted its price targets across the transportation group as part of a third-quarter earnings preview.

UPS shares traded marginally lower in Wednesday’s pre-market trade, near $93.08, at the time of writing.

Citi Flags Fuel Prices, Interest Rates

Citi said higher fuel prices and rising interest rates are likely to keep many investors cautious heading into the transportation sector's third-quarter earnings season, according to The Fly.

The brokerage said recent declines in transportation stocks have created a more favorable risk/reward heading into earnings. Citi also adjusted targets on several other transportation stocks, including Union Pacific, J.B. Hunt, FedEx, Werner and TFI International, according to The Fly.

UPS Prepares For Holiday Shipping Season

UPS said it is entering the 2026 holiday shipping season with expanded shipping options, including enhanced shipment tracking and package-protection solutions.

The company said its RFID-powered tracking technology provides more precise, real-time tracking information as packages move through its network. UPS expects to deliver more than 4 billion RFID-enabled packages by the end of 2026.

“We have delivered industry-leading service for eight consecutive peak seasons,” Matt Guffey, UPS executive vice president and chief U.S. Domestic Officer, said.

UPS also highlighted greater pickup visibility, simplified returns through UPS and Happy Returns, flexible delivery options and increased automation at facilities in Denver, St. Paul, Syracuse and Portland.

UPS Adds PIN-Based Protected Delivery

UPS introduced Protected Delivery, a service for eligible shipments that requires recipients to provide a PIN to the driver before a package is released.

The company said the service is designed to add an extra layer of security for high-value purchases and other sensitive deliveries during the holiday shipping period.

UPS also said it is hiring 100,000 seasonal employees across hundreds of locations nationwide for the holiday season.

When Does UPS Report Q3 Earnings?

UPS is scheduled to release its third-quarter 2026 financial results on Oct. 27, with the earnings conference call set for 8:30 a.m. ET.

Analysts tracked by Fiscal AI expect UPS to report revenue of approximately $22.14 billion and earnings of $1.63 per share for the quarter.

How Retail Views UPS

On Stocktwits, retail sentiment toward UPS remained 'Neutral' over the past 24 hours, with a high participation rate.

UPS shares are down more than 7% year to date.

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