FedEx (NYSE:FDX) Price Target Cut to $423.00 by Analysts at Wolfe Research

Key Points

• Wolfe Research trimmed its FedEx price target to $423 from $427 but kept an "outperform" rating, implying roughly a 14% upside, while the analyst consensus remains a "Moderate Buy" with an average target of $396.88.
• Earnings beat: FedEx reported $5.25 EPS vs. $4.12 expected and $24 billion in revenue (vs. $23.44B est.), with revenue up 8.3% year-over-year; the stock traded at $370.78, near its 52-week high of $392.86.
• Spinoff thesis and risk: FedEx Freight is guiding to up to 12% operating-profit growth and held an investor day ahead of a planned spinoff—potentially unlocking value—but Amazon's expanded USPS delivery deal poses a structural volume headwind.

FedEx (NYSE:FDX - Get Free Report) had its target price decreased by equities research analysts at Wolfe Research from $427.00 to $423.00 in a research note issued to investors on Tuesday,MarketScreener reports. The brokerage currently has an "outperform" rating on the shipping service provider's stock. Wolfe Research's target price points to a potential upside of 14.08% from the company's previous close.

A number of other analysts have also recently weighed in on the company. Raymond James Financial increased their price target on FedEx from $305.00 to $410.00 and gave the stock an "outperform" rating in a research report on Friday, February 13th. The Goldman Sachs Group increased their price target on FedEx from $364.00 to $369.00 and gave the stock a "buy" rating in a research report on Friday, March 13th. Wells Fargo & Company increased their price target on FedEx from $430.00 to $450.00 and gave the stock an "overweight" rating in a research report on Friday, March 20th. Wall Street Zen upgraded shares of FedEx from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Finally, Oppenheimer reiterated a "market perform" rating on shares of FedEx in a research report on Friday, December 19th. Eighteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $396.88.

FedEx Stock Performance

FDX stock traded up $13.78 during trading on Tuesday, hitting $370.78. 184,480 shares of the company's stock traded hands, compared to its average volume of 1,944,406. The company has a quick ratio of 1.44, a current ratio of 1.47 and a debt-to-equity ratio of 0.77. FedEx has a 52 week low of $194.29 and a 52 week high of $392.86. The stock has a fifty day moving average price of $362.42 and a two-hundred day moving average price of $302.58. The stock has a market capitalization of $88.47 billion, a price-to-earnings ratio of 19.65, a price-to-earnings-growth ratio of 1.59 and a beta of 1.28.

FedEx (NYSE:FDX - Get Free Report) last announced its quarterly earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share for the quarter, topping analysts' consensus estimates of $4.12 by $1.13. The business had revenue of $24 billion for the quarter, compared to analysts' expectations of $23.44 billion. FedEx had a return on equity of 16.76% and a net margin of 4.88%.The business's quarterly revenue was up 8.3% on a year-over-year basis. During the same period in the prior year, the firm earned $4.51 EPS. As a group, equities analysts anticipate that FedEx will post 19.14 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. EFG International AG bought a new position in shares of FedEx in the fourth quarter valued at approximately $27,000. Ulland Investment Advisors LLC bought a new position in shares of FedEx in the fourth quarter valued at approximately $29,000. Tucker Asset Management LLC bought a new position in shares of FedEx in the fourth quarter valued at approximately $29,000. Wilkerson Advisory Group LLC bought a new position in shares of FedEx in the fourth quarter valued at approximately $29,000. Finally, ORG Partners LLC boosted its holdings in shares of FedEx by 50.0% in the fourth quarter. ORG Partners LLC now owns 105 shares of the shipping service provider's stock valued at $30,000 after acquiring an additional 35 shares in the last quarter. Institutional investors and hedge funds own 84.47% of the company's stock.

Key FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx Freight is guiding to up to 12% operating-profit growth as it prepares to separate from FedEx, signaling stronger standalone margins and clearer investor visibility into the LTL business ahead of the spinoff. This outlook supports the view that the divestiture could unlock value for FDX shareholders. FedEx Freight targets up to 12% operating profit growth ahead of spinoff
• Positive Sentiment: FedEx Freight held its inaugural Investor Day at the NYSE where management emphasized network optimization, commercial offerings, and the company’s advantaged positioning as the largest North American LTL carrier — messaging that helps build investor confidence in the spinoff thesis. FedEx Freight Hosts Inaugural Investor Day Ahead of Planned Spinoff from FedEx
• Positive Sentiment: Argus Research reiterated a Buy on FDX and raised its price target to $400, giving institutional and retail investors an analyst-backed upside case that reinforces the positive market reaction. Argus Research Sticks to Its Buy Rating for FedEx (FDX)
• Neutral Sentiment: Sector and stock commentary (Zacks, Seeking Alpha) highlights FedEx’s stronger mix, network optimization and recent cost reductions that have driven a multi-month rally; these analyses support a longer-term constructive case but note macro and fuel volatility risks. FedEx: Premium Mix And Network Optimization Supporting High-Quality Growth
• Negative Sentiment: Amazon’s expanded delivery deal with the U.S. Postal Service (expected to move a large share of Amazon volume) raises concerns about lower parcel volumes for FedEx in e-commerce segments, a structural risk that has pressured peers and acts as a clear headwind to volume-driven revenue growth. Amazon USPS Delivery Pact Poses New Questions For FedEx Investors

FedEx Company Profile

FedEx Corporation NYSE: FDX is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx's core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.

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