Analyst Ken Hoexter from Bank of America Securities reiterated a Buy rating on FedEx and increased the price target to $440.00 from $431.00.
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Ken Hoexter has given his Buy rating due to a combination of factors, including FedEx’s accelerating earnings outlook and strong execution in its core Express segment. Management raised its fiscal 2026 earnings guidance midpoint by about 7%, supported by meaningful U.S. volume gains, better international pricing, and effective cost control during peak season, signaling durable profit growth momentum.
He also highlights that FedEx is achieving its best U.S. market‑share gains in two decades while advancing its Network 2.0 optimization, which should further enhance efficiency as more volume flows through upgraded facilities. Coupled with expectations for mid‑teens operating income growth (excluding Freight), benefits from network integration, disciplined pricing, and the planned Freight spin, Hoexter sees justification for a higher valuation and raises his price objective to $440, reinforcing his Buy recommendation.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $405.00 price target.