FedEx price target lowered to $300 from $325 at BMO Capital

BMO Capital analyst Fadi Chamoun lowered the firm’s price target on FedEx to $300 from $325 and keeps a Market Perform rating on the shares after its Q1 earnings miss and guidance cut. In spite of the company’s “incremental cost reduction” efforts, the firm points to a more muted than expected demand environment, unfavorable shift in product mix, and pressure on International yields driving the disappointing performance, the analyst tells investors in a research note, adding that the risk to revenue assumptions still “remains to the downside”.