FedEx resumed with an Overweight at Stephens

Stephens resumed coverage of FedEx (FDX) with an Overweight rating and $260 price target. While “hesitant of the parcel backdrop as a whole,” recent share gains are “encouraging” an the firm expects continued improvement in express off of this lower base, the analyst tells investors. The firm believes FedEx’s new volumes will be accretive to pricing and while it notes that investors were “spooked at the lack of leverage” in guidance, it argues that this is largely international trade driven and the firm would prefer FedEx over UPS (UPS), the analyst added.