FedEx upgraded to Hold from Reduce at HSBC

HSBC upgraded FedEx (FDX) to Hold from Reduce with a price target of $360, up from $335, on higher EPS and better yield outlook. The firm believes improved parcel growth and yield outlook supported by ramp-up in priority B2B verticals are positive catalysts. However, ongoing LTL softness could limit the value upside from the FedEx Freight spinoff, while potential demand and fuel price headwinds from the Middle East conflict will likely remain an overhang. HSBC notes the company reported Q3 non-GAAP EBIT that beat consensus and the firm’s estimates on solid domestic and international express volume and yields. FedEx also raised FY26 guidance on better yields.