Loop Capital analyst Rick Paterson upgraded UPS (UPS) to Buy with an unchanged price target of $131. The shipping giant closed Friday up 53c to $105.61.

The stock is down 18% in three weeks and flirting with a 12-month low, Paterson tells investors in a research note. He attributes the selloff, in part, to news on February 9 that Amazon (AMZN) plans to offer some limited parcel delivery services to third parties. The analyst believes concerns around Amazon "may be a little overblown." Paterson believes Amazon represents about 4%-6% of "lower margin" revenues at UPS. If all of that is ultimately brought into Amazon's own network, "that's hardly a disaster," he contends. Further, such a move could take some pressure off UPS's capital spending, Paterson adds.