On Friday, BMO Capital adjusted its price target on shares of FedEx (NYSE:FDX), increasing it to $310 from the previous $290, while keeping a Market Perform rating.
The adjustment comes in response to the company's third-quarter fiscal year 2024 results, which surpassed expectations due in part to reduced variable compensation expenses. This boost in earnings was noted for both the Express segment and the company as a whole.
FedEx has shown consistent progress in reducing costs, which has helped to counterbalance the effects of a challenging macroeconomic landscape. The management team has confirmed their commitment to achieving the cost savings goals outlined in their DRIVE initiative. These targets include a $1.8 billion reduction in fiscal year 2024 and a total of $4 billion by fiscal year 2025.
Despite the positive developments in cost savings, the company has decided to maintain its earnings per share (EPS) guidance for the middle of the range, which stands at $17.75. This decision reflects a cautious but stable outlook for the company's financial performance in the near term.
FedEx's latest financial disclosure, coupled with BMO Capital's updated price target and steady rating, provides investors with a clearer picture of the company's current standing and future expectations within the logistics and delivery industry.
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