Analyst Ken Hoexter of Bank of America Securities reiterated a Buy rating on FedEx (FDX – Research Report), with a price target of $272.00.
Ken Hoexter has given his Buy rating due to a combination of factors including FedEx’s ongoing efforts in cost savings and operational efficiencies. Despite the challenges posed by macroeconomic uncertainties and inflationary pressures, FedEx has made significant progress in its DRIVE cost savings initiatives, achieving $600 million in savings in the third quarter of fiscal year 2025. The company is also advancing its Network 2.0 transformation and Tri-color initiatives, which are expected to further enhance operational efficiencies.
While the industrial economy remains weak, impacting FedEx’s business-to-business volumes, the company’s strategic initiatives are seen as a positive catalyst for future growth. Hoexter acknowledges the current economic headwinds but maintains a Buy rating based on the potential value unlock from FedEx’s structural cost reductions and the anticipated benefits from its upcoming spin-off of FedEx Freight. The price objective has been adjusted to $272, reflecting these considerations.
In another report released on March 19, Citi also maintained a Buy rating on the stock with a $317.00 price target.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is neutral on the stock.
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