JPMorgan analyst Brian Ossenbeck expects UPS (UPS) shares to “materially underperform” as the market digests the strategic and financial implications of the “unexpected and accelerated” glide-down of Amazon (AMZN) by 50%-plus, combined with the insourcing of the SurePost business from USPS. The firm, which notes that it had put UPS on the list to avoid in its Q4 preview, expects the strong U.S. Domestic performance in the quarter will be overlooked given key questions to be addressed on the insourcing of SurePost and how much volume will be retained at a time when Amazon is rapidly leaving the network. JPMorgan has a Neutral rating on UPS shares, which are down about 15% in pre-market trading as the company’s earnings call continues.
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