Analyst Jordan Alliger from Goldman Sachs maintained a Buy rating on FedEx and keeping the price target at $405.00.
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Jordan Alliger has given his Buy rating due to a combination of factors linked to FedEx Freight’s planned spin-off and its medium-term roadmap. He views the company’s strategy to optimize its linehaul, dock, and fleet operations, enhance commercial offerings in key markets, and further digitize the customer experience through technology and AI as supportive of sustained profitable growth.
Alliger also points to management’s targets of 4%-6% annual revenue growth and 10%-12% EBIT growth, along with roughly 300 basis points of margin expansion, as both credible and potentially conservative. While acknowledging near-term headwinds from transition service agreements and technology spending, he believes an eventual freight recovery can drive higher network density, better pricing, and stronger incremental margins, supporting upside to the current financial framework over time.
In another report released today, UBS also assigned a Buy rating to the stock with a $446.00 price target.
FDX’s price has also changed dramatically for the past six months – from $239.930 to $373.430, which is a 55.64% increase.