FedEx announced that it will start shipping the first round of Moderna’s COVID-19 vaccines for McKesson Corp. throughout the US.
FedEx (FDX) said it will begin shipment following the Food and Drug Administration’s (FDA) approval for the emergency use of the vaccine. The company will use its FedEx Priority Overnight service, which is supported by its FedEx Priority Alert advanced monitoring, to transport the vaccines and kit supplies for the administration of the vaccine.
Moderna is the second company for which the delivery giant will start shipping COVID-19 vaccines. A week ago, the company started delivering Pfizer-BioNTech COVID-19 vaccines across the US. (See FDX stock analysis on TipRanks)
“The shipment of vaccines to help end the COVID-19 pandemic is among the most important work in the history of FedEx, and our team is focused on the safe and efficient delivery of these critical shipments,” said FedEx CEO Raj Subramaniam. “As we have said since the onset of the pandemic and our relief efforts, this is who we are and what we do.”
Ahead of the announcement, Raymond James analyst Patrick Brown raised the stock’s price target to $305 (10.7% upside potential) from $280. In a note to investors, Brown wrote, “while we are cognizant of lingering macro risk, we see mounting tailwinds in the residential parcel delivery complex anchored by a pronounced e-commerce acceleration and seemingly positively evolving pricing landscape.”
Overall, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 15 Buys, 3 Holds and 1 Sell. The average price target stands at $333.18 and implies upside potential of about 20.9% to current levels. Shares have gained 82.2% year-to-date.
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