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Investing.com - UBS raised its price target on FedEx (NYSE:FDX) to $314 from $293 while maintaining a Buy rating following the company’s first-quarter fiscal 2026 earnings report. According to InvestingPro data, FedEx appears undervalued based on its Fair Value analysis, with analyst targets ranging from $200 to $320.
FedEx reported earnings per share of $3.83 for the quarter, exceeding the consensus estimate of $3.60 and UBS’s projection of $3.57.
The company’s Federal Express segment delivered stronger-than-expected revenue growth of 4% year-over-year, compared to UBS’s forecast of a 1% decline, while also achieving margin improvement of 65 basis points versus the estimated 10 basis points.
UBS noted that the Freight segment underperformed expectations with an operating margin 190 basis points below their forecast.
The investment firm expects a positive market response to FedEx shares given the earnings beat and fiscal 2026 guidance that aligns closely with consensus estimates, especially considering poor investor sentiment heading into the earnings release.
In other recent news, FedEx reported impressive fiscal first-quarter 2026 results, with adjusted earnings per share (EPS) of $3.83, surpassing the anticipated $3.68. The company’s revenue also exceeded forecasts, reaching $22.2 billion compared to the expected $21.69 billion. Following these results, several analyst firms adjusted their price targets for FedEx. Wells Fargo raised its price target to $250, describing FedEx’s outlook as "better than expected," though they noted the revenue guidance seemed "somewhat optimistic." BMO Capital lowered its price target to $255, citing that while revenues were significantly higher, the guidance for adjusted EBIT and EPS was slightly below expectations. BofA Securities increased its price target to $244 after FedEx’s earnings per share exceeded both their and Wall Street’s expectations. Stifel also adjusted its price target to $296, maintaining a Buy rating despite citing economic uncertainty. These developments reflect the mixed reactions from analysts following FedEx’s recent financial performance.
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