David Vernon, an analyst from Bernstein, maintained the Hold rating on FedEx (FDX – Research Report). The associated price target was raised to $282.00.
David Vernon has given his Hold rating due to a combination of factors impacting FedEx’s financial performance and outlook. The company reported a slight miss in earnings, primarily due to higher than expected costs in its Express and Freight segments, as well as challenges from a compressed peak season and adverse weather conditions. Despite stronger volumes in Express, cost pressures and weaker international yields have offset these gains, leading to results that fell short of expectations.
Additionally, FedEx has revised its financial guidance downward for the fiscal year, with revenue expected to be flat or slightly down year-over-year, and adjusted earnings per share guidance reduced by 6%. The company is also lowering its capital expenditure plans, reflecting a cautious stance in response to a shifting macroeconomic environment and a weaker industrial economy. These factors contribute to a conservative outlook, justifying the Hold rating as FedEx navigates these challenges while maintaining pricing discipline in the commercial market.
In another report released on March 6, Wells Fargo also maintained a Hold rating on the stock with a $275.00 price target.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is neutral on the stock.
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