UPDATE: Macquarie Research Downgrades UPS As Peak Pressures Persist

In a report published Monday, Macquarie Research analyst Kelly Dougherty downgraded the rating on

from Outperform to Neutral, and lowered the price target from $118.00 to $106.00. In the report, Macquarie Research noted, “UPS pre-announced very disappointing 4Q14 results from another rocky peak performance. Instead of falling short on service commitments as in 2013, UPS fell short from a financial perspective as costs skewed much higher than expected. UPS hit an all-time high just before the pre-announcement, which had it trading near our price target. In spite of Friday's 10% decline (vs a 2% drop for the broader transport group), we're downgrading UPS to Neutral as we see limited upside/near-term catalysts in light of another blow to investor confidence & a meaningfully lower 2015 growth outlook.” UPS closed on Friday at $102.93.