HSBC downgrades FedEx to Hold on slower recovery

HSBC downgraded FedEx (FDX) to Hold from Buy with a price target of $300, down from $350. The analyst says deteriorating volume mix and weak business-to-business weighed on margins in the company’s fiscal Q1. FedEx’s fiscal 2025 guidance was lowered slightly, but implies sequentially higher volumes, yields and cost savings, the analyst tells investors in a research note. HSBC downgraded the shares citing the recent rally and a slower recovery. It also sees a negative read-across from FedEx’s earnings report to UPS (UPS) and DHL (DHLGY).