Citi analyst Ariel Rosa maintained a Buy rating on FedEx today and set a price target of $310.00.
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Ariel Rosa has given his Buy rating due to a combination of factors that highlight FedEx’s promising outlook. The recent meeting with FedEx’s management revealed both short-term positive developments and a long-term strategy aimed at enhancing margins and free cash flow. The company’s announcement of expected year-over-year EPS growth for the upcoming fiscal quarter has already resulted in a notable increase in FedEx’s share price, alleviating concerns about potential negative impacts from fleet adjustments and weak freight trends.
In addition, FedEx’s strategic decisions, such as the planned spin-off of its Freight segment, are seen as opportunities to unlock value and capitalize on operating leverage. The company is making strides in cost reduction and pricing strategies, which are expected to contribute to improved financial performance. Ariel Rosa’s confidence is further supported by FedEx’s ability to manage disruptions effectively and the anticipation of a more favorable pricing environment, leading to a raised price target and a positive outlook for the company’s future earnings.
In another report released on November 8, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $295.00 price target.