FedEx downgraded to Hold from Buy at Loop Capital

Loop Capital downgraded FedEx (FDX) to Hold from Buy with a price target of $283, down from $365, as part of a broader research note downgrading the Transportation sector based on the announcement of Canada tariffs by the White House. With tariffs – even if they work – the benefits are all back-end loaded, while the pain is up front and immediate, and the companies transferring all the cash to the US government are adept at updating prices quickly and accordingly, the analyst tells investors in a research note. Loop adds that the resulting inflation reduces sales and, ultimately, transportation demand, noting that the transportation sector has already been in a “freight recession” for the last two years, and the Tariff policy will extend it.