J.P. Morgan analyst Brian Ossenbeck has maintained their bullish stance on FDX stock, giving a Buy rating on July 16.
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Brian Ossenbeck has given his Buy rating due to a combination of factors that highlight FedEx’s strategic positioning and potential for growth. One of the primary reasons is the strong and improving pricing trends in the parcel delivery sector. FedEx has managed to maintain robust core parcel prices, which are expected to drive a positive revenue spread over costs in the upcoming fiscal quarter. Additionally, the company’s recent surcharge announcements, which include significant increases for peak season, further bolster revenue management and help offset challenges such as lower delivery density in B2C shipments.
Another factor contributing to the Buy rating is FedEx’s focus on leveraging B2C growth, which could enhance incremental margins despite investor concerns about pricing power. The company’s strategic initiatives, such as Network 2.0, aim to optimize capacity and reduce the operational footprint, potentially leading to improved margins. Furthermore, the upcoming spin-off of FedEx Freight and the planned investor days are expected to provide clearer insights into future opportunities and financial disclosures, supporting a positive outlook for the company.
In another report released on July 16, TR | OpenAI – 4o also upgraded the stock to a Buy with a $259.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FDX in relation to earlier this year.