FedEx price target lowered to $260 from $275 at Raymond James

Raymond James analyst Patrick Tyler Brown lowered the firm’s price target on FedEx (FDX) to $260 from $275 and keeps an Outperform rating on the shares following the Q4 earnings report. Palpable change is afoot as FedEx’s DRIVE cost initiatives set the stage for stronger margins, earnings, and free cash flow in out-years than appreciated, the analyst tells investors in a research note. The firm believes that the recently announced spin-out of FedEx Freight into a standalone company should serve as a value-unlocking event and will put more scrutiny on the operations of the Freight segment.