UPDATE: J.P. Morgan Downgrades United Parcel Service to Neutral, Lowers PT on Expected Slower EPS Growth

In a report published Monday, J.P. Morgan analyst Thomas R. Wadewitz downgraded the rating on

from Overweight to Neutral, and lowered the price target from $90.00 to $84.00. In the report, J.P. Morgan noted, “We are lowering our rating on UPS from Overweight to Neutral to reflect our expectation of a slower pace of EPS growth looking forward and given our view that there is limited room for further valuation expansion. We expect UPS to continue to deliver a combination of solid cost control and growth in the B2C segment. However, it appears that the headwinds from trade down in international and slower growth from US industrial customers will probably translate to slower EPS growth than we previously expected. Although we continue to expect UPS to deliver strong free cash generation, we suspect that this may not be enough to drive significant upside for the stock if EPS growth is muted.” United Parcel Service closed on Friday at $86.12.