Loop upgrades FedEx to Buy on ‘value creating spin’

Loop Capital last night upgraded FedEx (FDX) to Buy from Hold with a price target of $365, up from $288. The company reported a modest fiscal Q2 beat versus consensus as cost savings in its Express business offset some margin compression in its Freight business, which is now going to be spun off at some point in the next 18-months, the analyst tells investors in a research note. The firm cites the “value creating spin” and recent pullback in the stock price for the upgrade. Loop’s “back of the envelope math is still fairly compelling.”