The firm downgraded UPS to a neutral rating from overweight.
Analysts also trimmed UPS' price target from $229 to $202, implying 14% upside from the stock's closing price Thursday. As e-commerce growth slows and pandemic trends normalize, parcel companies may be facing overcapacity. Amazon may have overbuilt warehouses for the current level of demand, JPMorgan pointed out.
Plus, UPS is set to negotiate 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 said. UPS is down 17.4% this year, in line with the S & P 500's 17.5% decline in 2022. —CNBC's Michael Bloom contributed reporting.
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