Declining earnings and UPS rating may negatively impact the stock

Bank of America recently downgraded UPS stock from "buy" to "neutral"

 due to several reasons, including the slow pace of cost reductions

, the delay in realizing the expected benefits of the driver voluntary separation program, 

and the accelerating decline in Amazon's business.

All of these factors were strong reasons for the stock downgrade.

Bank of America not only downgraded the rating, 

but also lowered its target price for UPS stock, reducing the target price from $115 to $98.

UPS Statements

UPS stated that it had stopped providing new guidance

after announcing its second-quarter results. Additionally,

 the company also withdrew its annual revenue forecast.

The company also noted that the decline, due to Amazon's declining business volume,

 exceeded expectations and was slower than the company's forecast.

 It is expected that Amazon's volumes will continue to decline by up to 30%. 

UPS CEO Carol Tomé said that the range of possible outcomes is wide, 

and that there is uncertainty due to the impact of tariffs.