TD Cowen analyst Jason Seidl has reiterated their bullish stance on FDX stock, giving a Buy rating today.
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Jason Seidl has given his Buy rating due to a combination of factors that indicate a positive outlook for FedEx. The company has raised its second-quarter guidance, suggesting potential year-over-year earnings per share growth, which is a significant improvement from previous expectations. This optimism is supported by a favorable mix of FedEx Express operations and stable peak season trends.
Furthermore, FedEx is implementing strategic initiatives like Network 2.0 and AI, which are expected to drive long-term cost reductions and operational efficiencies. Despite some anticipated costs related to the grounding of MD-11 aircraft, FedEx management has expressed confidence in their ability to manage these expenses without impacting earnings growth. The company’s focus on revenue quality and its ability to adapt to capacity challenges also contribute to the positive rating.
In another report released today, Citi also reiterated a Buy rating on the stock with a $310.00 price target.