UPS shares falls 5%; BofA cuts earnings estimate, price objective

** Shares in United Parcel Service UPS.N fell 5% on Tuesday in its biggest one-day pct loss since Jan 30th, biggest loser in S&P 500 industrial sector index .SPLRCI; BofA analyst reiterates 'buy' rating but cuts price objective to $129 from $133, shaves 15% off Q1 EPS estimate

*** BoFA analyst Ken Hoexter cut Q1 EPS est for UPS, expected to report April 29, to $1.31 from $1.55 citing "softer demand from tariff uncertainty and winter weather" and cut 2025 EPS estimate by 6% to $7.40

** Hoexter cut 2025 domestic adj operating margin to 8.4% from 8.8%, which would be a 80 bp improvement y-y but below company's 130 bps target expansion

** While UPS noted Jan trending ahead of targets when it reported 4Q results, analyst said expects "volumes have stalled in Feb and Mar" and that despite volumes pullback "UPS noted hesitancy to pull out additional structural costs beyond current targets as it expects the temporary tariff demand freeze to ease."

** UPS last traded at $109.95 vs median PT of $133, as per LSEG, stock down 12.8% YTD