UPS shares Might be on maintain And by no means using A critical catalyst to drive progress, Based mostly on JPMorgan. “Strain continues mounting on the U.S. shopper and e-comm progress decelerates,” JPMorgan’s Brian Ossenbeck said in a notice Friday. “UPS Is working very properly in a dynamic environment however we anticipate further enhancements Shall be gradual And do not see a lot upside to a 2022 information already pulled forward.” The agency downgraded UPS to a impartial rating from obese. Analysts furtherly trimmed UPS’ worth goal from $229 to $202, implying 14% upside from the inventory’s closing worth Thursday. As e-commerce progress slows and pandemic tendencies normalize, parcel corporations Might Even be dealing with overperformance. Amazon might have overbuilt warehouses for The current diploma of demand, JPMorgan Recognized. Plus, UPS Is about To barter its contract with the Teamsters labor union for 2023. “Amazon’s current commentary on extra performance and the 2023 Teamsters labor negotiation Will not probably have any shut to time period monetary influence however will weigh on UPS valuation,” Ossenbeck said. UPS is down 17.4% this yr, In accordance to the S & P 500’s 17.5% decline in 2022. —CNBC’s Michael Bloom contrihowevered reporting.

A United Parcel Service (UPS) truck delivers bins in Manhattan on April 26, 2022 in NY metropolis.

Spencer Platt | Getty Pictures

UPS shares Might be on maintain And by no means using A critical catalyst to drive progress, Based mostly on JPMorgan.

Source: https://www.cnbc.com/2022/05/13/jpmorgan-downgrades-ups-citing-slowing-e-commerce-growth.html