Street Calls of the Week
Investing.com - Jefferies raised its price target on FedEx (NYSE:FDX) to $280.00 from $275.00 on Friday, while maintaining a Buy rating on the stock. According to InvestingPro data, FedEx is currently trading below its Fair Value, with analyst targets ranging from $200 to $320.
The price target increase follows FedEx’s fiscal first-quarter results, which Jefferies described as "better than feared" after the company’s fourth-quarter earnings miss and lack of guidance. The company maintains a GOOD financial health score, with trailing twelve-month revenue of $88.59 billion and a P/E ratio of 13.4x.
FedEx also provided a fiscal year 2026 outlook, which Jefferies noted would help investors frame earnings expectations for the year. InvestingPro subscribers can access additional insights, including 6 more ProTips and a comprehensive Pro Research Report, part of the platform’s coverage of 1,400+ US stocks.
Jefferies highlighted continued strength in FedEx’s U.S. package business, which saw average daily volume increase by 5% and revenue per package rise by 3%. The firm also noted that FedEx’s international operations performed better than expected.
While Jefferies observed that FedEx’s less-than-truckload (LTL) segment "remains challenged," the firm reiterated its Buy rating based on what it considers an "attractive SOTP" (sum-of-the-parts valuation).
In other recent news, FedEx reported its first-quarter fiscal 2026 earnings, revealing an earnings per share of $3.83, surpassing the consensus estimate of $3.60. UBS responded to these strong results by raising its price target for FedEx to $314, maintaining a Buy rating. BofA Securities also increased its price target to $244, noting that FedEx’s earnings exceeded expectations by 8% compared to their projections. Stifel adjusted its price target to $296, citing economic uncertainty, but still acknowledged the company’s earnings exceeded both its guidance and analyst expectations.
Wells Fargo raised its price target for FedEx to $250, describing the company’s recent results and outlook as "better than expected," though it pointed out that revenue guidance seemed "somewhat optimistic." BMO Capital took a slightly different stance, lowering its price target to $255 while maintaining a Market Perform rating, following FedEx’s higher-than-expected revenues but slightly below-anticipated guidance for adjusted EBIT and EPS. These developments reflect a range of analyst perspectives on FedEx’s financial performance and future outlook.
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