FedEx price target lowered to $350 from $359 at JPMorgan

JPMorgan analyst Brian Ossenbeck lowered the firm’s price target on FedEx to $350 from $359 and keeps an Overweight rating on the shares. The firm modestly lowered estimates following the company’s weaker than expected fiscal Q1 results. FedEx’s “significant miss” was a reminder that the legacy Express business carries significant operating leverage to unexpected drops in demand, which in this quarter was exacerbated by competition and negative mix shift, the analyst tells investors in a research note. JPMorgan still expects the strategic review of the freight operation will conclude with a spin-off that justifies a discounted sum-of-the-parts analysis which is reflected in its price target.