FedEx price target raised to $370 from $366 at JPMorgan

JPMorgan raised the firm’s price target on FedEx (FDX) to $370 from $366 and keeps an Overweight rating on the shares. The firm expects FedEx shares “will materially outperform” as the sum-of-the-parts valuation is “officially put into play” with the Freight spin. There will be some debate as to which multiples should be used, especially after a weaker fiscal Q2 for the division, but the probability of a spin is now 100% versus 50% “at best” previously, the analyst tells investors in a research note. JPMorgan sees further upside to the stock beyond the 9% rally last night. It believes the spin is not yet priced into shares.