FedEx upgraded to Buy at Jefferies on cost cut ‘transformation’

As previously reported, Jefferies upgraded FedEx (FDX) to Buy from Hold with a price target of $275, down from $300. With the market “overly distracted by the macro,” the firm thinks investors are now ignoring the idiosyncratic cost transformations going on at FedEx that it thinks can lead to continued EPS growth in FY26 and FY27 regardless of the top line, the analyst says. The firm thinks Network 2.0 and the Tri-Color Initiative will be meaningful contributors to profit growth over the next two years and that any rebound in the industrial economy would have a “meaningful flow-through to earnings,” the analyst tells investors.