Analyst Ariel Rosa from Citi maintained a Buy rating on FedEx (FDX – Research Report) and decreased the price target to $317.00 from $347.00.
Ariel Rosa has given his Buy rating due to a combination of factors that suggest potential for FedEx’s stock to perform well despite current market challenges. Rosa acknowledges the current negative sentiment surrounding FedEx, particularly with concerns over tariffs and consumer demand impacting its outlook. However, he highlights FedEx’s strategic shift towards pricing and efficiency, which is crucial in the face of macroeconomic headwinds.
Rosa is encouraged by FedEx’s cost control initiatives, such as the DRIVE initiative, which aims to generate significant savings. This, combined with the potential for better-than-expected earnings results, underpins his positive outlook. Additionally, Rosa notes the strategic leadership changes and the potential for peak season surcharges to positively impact Express package yields as factors supporting the Buy rating. Despite lowering the EPS estimates due to macroeconomic weaknesses, the expected share price return remains attractive, reinforcing the Buy recommendation.
In another report released today, Barclays also maintained a Buy rating on the stock with a $365.00 price target.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is neutral on the stock.
Questions or Comments about the article? Write to editor@tipranks.com