UPS shares could possibly be on maintain with no main catalyst to drive progress, in line with JPMorgan. “Pressure continues mounting on the U.S. consumer and e-comm growth decelerates,” JPMorgan’s Brian Ossenbeck mentioned in a notice Friday. “UPS is operating very well in a dynamic environment but we expect further improvements will be gradual and do not see much upside to a 2022 guide already pulled forward.” The agency downgraded UPS to a impartial ranking from chubby. Analysts additionally trimmed UPS’ value goal from $229 to $202, implying 14% upside from the inventory’s closing value Thursday. As e-commerce progress slows and pandemic tendencies normalize, parcel firms could also be going through overcapacity. Amazon could have overbuilt warehouses for the present degree of demand, JPMorgan identified. Plus, UPS is about to barter its contract with the Teamsters labor union for 2023. “Amazon’s recent commentary on excess capacity and the 2023 Teamsters labor negotiation will not likely have any near term financial effect but will weigh on UPS valuation,” Ossenbeck mentioned. UPS is down 17.4% this 12 months, in keeping with the S & P 500’s 17.5% decline in 2022. —CNBC’s Michael Bloom contributed reporting.
A United Parcel Service (UPS) truck delivers bins in Manhattan on April 26, 2022 in New York City.
Spencer Platt | Getty Images
UPS shares could possibly be on maintain with no main catalyst to drive progress, in line with JPMorgan.
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