FedEx’s Strategic Initiatives and Cost-Saving Efforts Justify Buy Rating Despite Near-Term Challenges

TD Cowen analyst Jason Seidl maintained a Buy rating on FedEx (FDX – Research Report) today and set a price target of $310.00.

Jason Seidl has given his Buy rating due to a combination of factors that reflect FedEx’s strategic initiatives and financial performance. Despite recent challenges, including missing earnings estimates and lowering guidance, FedEx is making significant strides in its network integration and cost-saving initiatives. The company’s DRIVE and Network 2.0 programs are on track to deliver substantial savings, with the integrated network expected to handle a significant portion of average daily volume by the end of fiscal year 2026.
Moreover, FedEx has demonstrated a commitment to capital efficiency, as evidenced by its share repurchase activities and reduced capital expenditure guidance. While near-term uncertainties persist, the company’s focus on controllable factors and disciplined pricing strategy positions it well for future growth. These strategic efforts, combined with the absence of an anticipated economic decline, underpin Seidl’s optimistic outlook and Buy rating for FedEx’s stock.

In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $272.00 price target.