BMO downgrades UPS, says path to improving profitability is 'challenging'

A UPS driver pushes a load of packages from his truck to a building in downtown Los Angeles, California, July 22, 2019.
Mike Blake | Reuters

UPS was downgraded on Wednesday by an analyst at BMO Capital Markets who cited concern about the logistics company's ability to improve its profitability.

Analyst Fadi Chamoun lowered his UPS rating to market perform from outperform. He also trimmed his price target on the stock to $123 per share from $125. That represents a 3.7% upside from Tuesday's close of $118.54.