FedEx stock price target lowered to $255 by BMO Capital

Investing.com - BMO Capital has lowered its price target on FedEx (NYSE:FDX) to $255.00 from $260.00 while maintaining a Market Perform rating on the stock. Currently trading at $226.50, InvestingPro analysis suggests FedEx is undervalued, with the company maintaining a solid P/E ratio of 13.4x.

The adjustment follows FedEx’s Q1/F26 results, which exceeded expectations despite subsequent guidance coming in slightly below anticipated figures for adjusted EBIT and EPS, even with significantly higher revenues of $88.59 billion. The company maintains a GOOD financial health score according to InvestingPro metrics, with a healthy dividend yield of 2.56%.

BMO Capital noted that FedEx continues to make steady progress on its transformation plan and has reaffirmed its target for $1 billion in cost savings this year.

The firm identified several factors pressuring FedEx’s performance in fiscal year 2026, including headwinds from shifting trade policies and unfavorable business mix.

BMO Capital has adjusted its F26 EPS estimates downward by 5.7% while maintaining its Market Perform rating on FedEx stock.

In other recent news, FedEx reported robust financial results for its fiscal first quarter of 2026, with adjusted earnings per share (EPS) of $3.83, surpassing the anticipated $3.68. The company’s revenue also exceeded expectations, totaling $22.2 billion compared to the forecasted $21.69 billion. Following these results, BofA Securities raised its price target for FedEx to $244.00, maintaining a Neutral rating, as the earnings exceeded both BofA’s and Wall Street’s expectations by 8% and 7%, respectively. Additionally, Stifel adjusted its price target for FedEx to $296 from $308, citing economic uncertainty, but kept a Buy rating on the stock. These developments highlight the company’s strong performance in the face of economic challenges.

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