Shares of UPS (UPS) were downgraded to Hold from Buy at Argus on Wednesday, with the firm saying the outlook for 2024 is "slow growth at best."
The firm explained that although UPS appears well-positioned to benefit from a number of positive trends, including the continued growth of e-commerce, recent results have disappointed at both the top and bottom lines.
"Meantime, the outlook for earnings and dividend growth over the next few quarters is tepid at best," analysts added.
Argus did point to some positives, such as the fact they have been encouraged by the company's CEO transition in 2020, as "a well-respected executive" from Home Depot, Carol Tome, taking over.
"We also like the current dividend yield of 4.1%, which signals value, and our long-term rating is BUY," analysts added. "However, we think that other stocks in the Industrial sector are more suitable for diversified portfolios at the current market juncture. We will look to get UPS back on the buy list upon clearer signs for EPS and dividend growth."
On Tuesday, UPS reported its latest quarterly earnings and said it plans to cut 12,000 jobs. The earnings release prompted a wave of Wall Street price target cuts.