03:40 PM EDT, 07/02/2024 (MT Newswires) -- United Parcel Service's ( UPS ) domestic freight activity is still soft, but capacity utilization in domestic package business has started to normalize, UBS said Tuesday in a note.

Additionally, margin pressure is moderating, while shippers' continued focus on cost savings, "could be a source of incremental trade down," UBS said.

However, due to the current "muted revenue performance in the domestic package business" and "ongoing weakness in the freight economy," the brokerage lowered its Q2 and Q3 estimates for UPS.

UBS had a buy rating for United Parcel Service ( UPS ) with a price target of $175.

United Parcel Service ( UPS ) shares fell 1% in recent Tuesday trading.

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