Argus raised the firm’s price target on FedEx (FDX) to $400 from $350 and keeps a Buy rating on the shares. The company has recently been impacted by soft industrial demand and competitive pricing that is cutting into its profits, prompting its management to invest in new technology that ultimately should allow FedEx to do more while decreasing its processing footprint by 30%, the analyst tells investors in a research note. FedEx is also emphasizing growth in higher-margin premium services, including automotive and cold chain support, Argus added.
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