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UPS shares may very well be on maintain and not using a main catalyst to drive progress, in line with JPMorgan. “Stress continues mounting on the U.S. client and e-comm progress decelerates,” JPMorgan’s Brian Ossenbeck stated in a notice Friday. “UPS is working very properly in a dynamic atmosphere however we anticipate additional enhancements might be gradual and don’t see a lot upside to a 2022 information already pulled ahead.” 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 corporations could also be dealing with overcapacity. Amazon could have overbuilt warehouses for the present degree of demand, JPMorgan identified. Plus, UPS is ready to barter its contract with the Teamsters labor union for 2023. “Amazon’s current commentary on extra capability and the 2023 Teamsters labor negotiation won’t seemingly have any close to time period monetary impact however will weigh on UPS valuation,” Ossenbeck stated. UPS is down 17.4% this yr, 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 Metropolis.
Spencer Platt | Getty Pictures
UPS shares may very well be on maintain and not using a main catalyst to drive progress, in line with JPMorgan.
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