JPMorgan lowered the firm’s price target on UPS (UPS) to $120 from $135 and keeps a Neutral rating on the shares post the Q4 report. The “unexpected acceleration” of Amazon (AMZN) volume leaving the UPS network has been a long-standing overhang on the stock, the analyst tells investors in a research note. The firm believes FedEx (FDX) should benefit from this capacity reduction as it does not think UPS can afford to be aggressive on price again. JPMorgan adjusted estimates lower to better reflect the incremental challenges UPS will face following the announcement of the accelerated glide down of Amazon volume.
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