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Investing.com - FedEx (NYSE:FDX) received a price target reduction from Stifel on Friday, with analyst firm lowering its target to $296 from $308 while maintaining a Buy rating. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $200 to $320.
The adjustment follows FedEx’s fiscal first quarter 2026 results, which showed adjusted earnings per share of $3.83, exceeding both the company’s guidance range of $3.40-$4.00 and analyst expectations of $3.61. The company maintains strong fundamentals with $88.59 billion in revenue and a P/E ratio of 13.44, while demonstrating consistent shareholder returns through aggressive share buybacks and 24 consecutive years of dividend payments.
Stifel noted that despite recent negative sentiment, including several analyst downgrades and concerns about macroeconomic pressures, tariffs, and changes to de minimis rules, FedEx demonstrated strong performance.
The firm highlighted FedEx’s ongoing Network 2.0 initiative as providing "substantial idiosyncratic opportunity to streamline costs and increase network flexibility," with the first quarter results serving as an important indicator of the program’s efficacy and execution.
FedEx provided full-year adjusted earnings guidance of $17.20 to $19.00 per share, which falls slightly below previous estimates at the midpoint, but Stifel believes this guidance "bakes in healthy conservatism given fluidity in the economic environment." For deeper insights into FedEx’s valuation and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, FedEx Corporation reported its fiscal first-quarter 2026 results, surpassing analysts’ expectations. The company’s adjusted earnings per share (EPS) came in at $3.83, exceeding the forecasted $3.68. Additionally, FedEx’s revenue outperformed projections, reaching $22.2 billion compared to the anticipated $21.69 billion. These results highlight the company’s strong financial performance in the recent quarter. The positive earnings report has attracted attention from investors and analysts alike. While the company’s stock saw some movement following the announcement, the focus remains on FedEx’s ability to exceed market expectations. The recent developments underscore the company’s operational strength and financial health. These results are likely to influence future analyst evaluations and investor sentiment.
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