Analyst Brian Ossenbeck from J.P. Morgan maintained a Buy rating on FedEx (FDX – Research Report) and decreased the price target to $323.00 from $372.00.
Brian Ossenbeck has given his Buy rating due to a combination of factors that highlight FedEx’s potential for growth and value. Despite some challenges in the freight segment and a generally negative sentiment across the sector, Ossenbeck sees positive momentum in FedEx’s pricing strategies and its attractive valuation on a sum-of-the-parts basis. The strategic evaluation of FedEx Freight and the potential reduction in industry capacity have sparked investor interest, even though the current trading price is below initial expectations.
Ossenbeck acknowledges the competitive pressures and the shift in logistics from traditional hub-and-spoke models to more regionalized networks. However, he remains optimistic about FedEx’s long-term prospects, particularly with the company’s focus on profitable growth and capital efficiency under new leadership. The anticipated spin-off of FedEx Freight into a standalone company is seen as a catalyst for unlocking value, and the analyst’s price target reflects a positive outlook on the company’s ability to navigate the evolving market dynamics.