FedEx price target lowered to $275 from $330 at BMO Capital

BMO Capital analyst Fadi Chamoun lowered the firm’s price target on FedEx (FDX) to $275 from $330 and keeps a Market Perform rating on the shares. The company continues to make steady progress on cost savings initiatives, but its Q3 results still fell 5% below expectations reflecting ongoing demand headwinds, particularly within higher yielding industrial markets, the analyst tells investors in a research note. While structural cost reductions should support positive operating leverage once demand recovers, visibility remains limited, the firm added.