FedEx price target lowered to $321 from $327 at Stifel

Stifel analyst J. Bruce Chan lowered the firm’s price target on FedEx to $321 from $327 and keeps a Buy rating on the shares after the company’s “disappointing” fiscal Q1 that included adjusted EPS of $3.60, or almost 25% below consensus. DRIVE program cost savings helped offset some of elevated expenses this quarter, but the firm believes the savings were not as material as expected, largely due to timing. Stifel thinks the shortfall this quarter makes it tougher to achieve an already downwardly-revised annual earnings guidance midpoint, but also argues “there’s a lot of value to unlock in this model, and perhaps more impetus to do so now than before.”