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Investing.com - Wells Fargo maintained its Equal Weight rating on FedEx (NYSE:FDX) while raising its price target to $250.00 from $235.00 on Friday. The stock, currently trading at a P/E ratio of 13.4x, appears undervalued according to InvestingPro’s Fair Value analysis.
The adjustment follows Wells Fargo’s analysis of FedEx’s recent results and outlook, which the firm described as "better than expected," though it noted the revenue guidance appears "somewhat optimistic."
Wells Fargo analyst Christian Wetherbee acknowledged that FedEx "appears to be executing well in a tough market" despite initial concerns about the company’s fiscal 2026 guidance, which projects 4-6% revenue growth against relatively flat earnings per share at the midpoint.
The firm identified approximately $1 billion in trade headwinds as a factor affecting operating leverage in the coming fiscal year, explaining some of the disconnect between revenue growth and earnings projections.
While Wells Fargo sees a potential path to FedEx meeting its guidance targets, the firm is modeling toward the lower end of the company’s earnings per share range to account for what it perceives as revenue projection risk.
In other recent news, FedEx Corporation reported impressive fiscal first-quarter 2026 results, with adjusted earnings per share (EPS) of $3.83, surpassing the forecasted $3.68. Revenue also exceeded expectations, reaching $22.2 billion compared to the anticipated $21.69 billion. Despite these strong earnings, BMO Capital lowered its price target for FedEx to $255, citing slightly below-anticipated guidance for adjusted EBIT and EPS. Meanwhile, BofA Securities raised its price target to $244, maintaining a Neutral rating, after FedEx’s earnings per share exceeded both BofA’s and Wall Street’s expectations by 8% and 7%, respectively. Stifel also adjusted its price target, reducing it to $296 due to economic uncertainty, while keeping a Buy rating. These developments reflect varied analyst perspectives following FedEx’s quarterly performance. Overall, the company’s results have prompted a mix of adjustments from major analyst firms.
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