JPMorgan ups FedEx target, places on ‘Positive Catalyst Watch’ into earnings

JPMorgan raised the firm’s price target on FedEx (FDX) to $366 from $350 and keeps an Overweight rating on the shares. The firm is taking a positive stance on FedEx into the earnings release on December 19 and placed the stock on “Positive Catalyst Watch.” It sees a high probability that the FedEx Freight segment is spun off into a separate company and management reiterates the fiscal 2025 earnings outlook. Management recently struck a more positive tone on pricing, which is consistent with JPMorgan’s latest check-ins with three parcel consulting groups that anticipate rate momentum to continue in 2025, the analyst tells investors in a research note. The firm expects FedEx will announce the results of the Freight strategic review in favor of a spin-off, putting the sum-of-the-parts valuation “firmly in play” after peer valuations shot up 25% over the last three months.