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JPMorgan downgraded United Parcel Service (NYSE:UPS) to a Neutral rating from Overweight on its view that the shipping giant is executing well, but lacks a clear share price catalyst in the near term.
Analyst Brian Ossenbeck and team expect further improvements for UPS will be gradual and do not see much upside to 2022 guidance that was already pulled forward by a year or the 2023 estimates.
While Amazon’s recent commentary on excess capacity and the 2023 Teamsters labor negotiation are seen as being likely to have any near-term financial effect on UPS (UPS), those developments are expected to weigh on UPS’ valuation.
The firm dropped its price target on Atlanta-based UPS to $202, which embeds a multiple consistent with the historical average.
Shares of UPS (UPS) fell 1.20% premarket to $176.50 vs. the 52-week trading range of $173.19 to $233.72. UPS has shown a slightly better return this year than the S&P 500 Index.
