Cowen & Co. raised FedEx’s price target by 58% to $264 (13.4% upside potential) from $167 and reiterated a Buy rating on the stock, amid expectations that positive e-commerce trends will continue to drive sales in the near-term. Shares are up 2.7% in pre-market trading.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Cowen analyst Helane Becker sees “no reason positive trends should end” in the near-term. The package delivery giant FedEx Corp. (FDX) is set to report its 1Q results on September 15 after the market bell, and Becker expects positive e-commerce trends and favorable repricing of contracts to benefit the 1Q volumes and revenue.
The 5-star analyst noted however that “FedEx valuation is currently near peak levels, but the market is attempting to digest the permanent shift to e-commerce volumes, which has caused the recent increase in the multiple.” Becker added that “The market continues to pay for growth (e-commerce) even if it is at the expense of margins.” (See FDX stock analysis on TipRanks).
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 16 Buys and 7 Holds. Given the year-to-date share price gain of about 54%, the average price target of $214.18 implies downside potential of about 8% to current levels.
Related News:
JP Morgan Lifts FedEx’s PT Ahead of 1Q Results Next Week
ByteDance To Join Up With Oracle, To Abandon TikTok US Sale – Report
Buffett’s Berkshire Divests Shares In Liberty Global, Axalta Coating
