JPMorgan upgrades UPS, predicts a 20% rally on improved pricing power

A United Parcel Service worker delivers packages in New York City.
Stephanie Keith | Getty Images

Parcel carrier UPS is exiting the pandemic with stronger pricing power, and that should help its stock, according to JPMorgan.

UPS held an investor day Wednesday, and the initial reaction to the event wasn't strong. Shares fell more than 4% after what several analysts described as conservative guidance for 2023.

However, JPMo