HSBC downgrades FedEx to Reduce on ‘expensive’ valuation

HSBC downgraded FedEx (FDX) to Reduce from Hold with a price target of $335, up from $285. The firm says that despite improved medium-term visibility and the June spin-off of FedEx’s freight business, it is turning cautious on the shares due to “expensive valuations.” Following four straight quarters of earnings growth, HSBC expects a decline in fiscal Q3 and Q4 from a high base, which could weigh on the shares, the analyst tells investors in a research note. The firm believes the positives are priced into FedEx at current levels.