Analyst Ravi Shanker from Morgan Stanley maintained a Sell rating on FedEx (FDX – Research Report) and keeping the price target at $200.00.
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Ravi Shanker has given his Sell rating due to a combination of factors impacting FedEx’s financial outlook. The company’s recent earnings report showed a mixed performance, with adjusted earnings slightly surpassing expectations but largely due to a one-time gain from asset sales. This raises concerns about the sustainability of earnings quality, as the GAAP earnings were significantly lower than the adjusted figures.
Moreover, FedEx’s management did not provide guidance for the fiscal year 2026, citing economic uncertainties related to trade policies, which was unexpected and negatively perceived by investors. The guidance for the first quarter of 2026 was also below expectations, further contributing to doubts about the company’s ability to achieve earnings growth in the coming year. These factors collectively suggest challenges ahead for FedEx, leading to the Sell rating.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FDX in relation to earlier this year.