JPMorgan cuts FedEx target, negative on shares into earnings

JPMorgan lowered the firm’s price target on FedEx (FDX) to $260 from $280 and keeps an Overweight rating on the shares. The firm is are taking a negative view on FedEx into the earnings release on June 24 as it sees downside risk to fiscal Q4 estimates from “stagnant” demand and tariff uncertainty. However, persistent business-to-business headwinds could be better reflected in expectations by the time of the print in a few weeks, the analyst tells investors in a research note. JPMorgan still believes FedEx looks attractive on a discounted sum-of-the-parts basis with the Freight spin and the Network 2.0 integration, however it continues to expect the near-term will remain challenging.