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Research Alert: CFRA Reiterates Sell Opinion On Shares Of United Postal Service, Inc.
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Research Alert: CFRA Reiterates Sell Opinion On Shares Of United Postal Service, Inc.
Apr 28, 2026 11:42 AM

02:20 PM EDT, 04/28/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target at $92, 12.6x our next-12-month EPS view of $7.34. We trim our 2026 EPS view by $0.06 to $7.00 and 2027 by $0.44 to $7.52. Q1 offered some positives with top- and bottom-line beats and better-than-guided International profits (-15.7% vs. -30.0%). Management maintained its 2026 guidance of $89.7B revenue and 9.6% adjusted operating margin, projecting operational inflection in Q2. We think revenue goals are reasonable, but we think margin goals are overly optimistic as we estimate Q2-Q4 requires an average margin of ~10.7%. Consumer spending trends in the U.S. lead us to believe a pullback was materializing prior to the conflict in Iran and we expect that to accelerate. Declines in B2B volumes (-5.1%) indicate industrial weakness. We think cost recovery via fuel surcharges will fail to deliver on profit protection as consumers become less accepting of price increases. Continued margin compression could pressure dividend feasibility as our 2026 EPS view implies a ~94% payout ratio.

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