Donald F. Colleran, the President and CEO of delivery services provider FedEx Corp.’s (NYSE: FDX) express unit, will retire on December 31 after a nearly 40-year stint with the company. He has been FedEx Express’ President and CEO since 2019.
Richard W. Smith will succeed Colleran as President and CEO of FedEx Express. Currently, Smith is Executive Vice-President of Global Support and regional President of the Americas.
On April 1, Smith will become President and CEO-elect of FedEx Express and will assume complete responsibility on September 1. Meanwhile, Colleran will continue as CEO Executive Advisor till December 31.
Raj Subramaniam, the President and COO of FedEx Corp., said, “From launching new capabilities for our customers to leading our global FedEx Express team during some of the most challenging times, including the COVID-19 pandemic, Don has been instrumental in creating and executing our remarkable global growth strategy.”
“Richard has a deep understanding of our business and has played a pivotal role in many of our most important initiatives, including our electric vehicle strategy and our life-saving vaccine distribution efforts to combat the COVID-19 pandemic,” Subramaniam added.
Headquartered in Tennessee, FedEx provides transportation, e-commerce, and business services across the world.
FDX stock closed 1.2% higher on Thursday. It gained another 0.3% in after-hours trading to end the day at $220.
Wall Street’s Take
On March 10, Robert W. Baird analyst Garrett Holland maintained a Buy rating on the stock with a $300 price target (36.8% upside potential).
Holland said, “We continue to like the risk/reward for FDX shares given the significant structural margin opportunity and depressed investor expectations as reflected in the near-record low valuation metrics versus history, S&P 500, and United Parcel Service (NYSE: UPS).”
Last week, Brian Ossenbeck of J.P. Morgan (NYSE: JPM) reiterated a Buy rating on FedEx but lowered the price target to $297 from $312 (35.4% upside potential).
Ahead of the company’s fiscal third-quarter results, which are scheduled to be released on March 17, Ossenbeck said, “The stock has lagged during a constant stream of weather and COVID-related service alerts and the recent flare-up of geopolitical tension.”
Despite these factors, the analyst expects FDX’s Q3 results to beat expectations and has reaffirmed the guidance for the Fiscal Year 2022.
Overall, the stock has a Strong Buy consensus rating based on 13 Buys and 2 Holds. The average FDX price target of $308.07 implies 40.5% upside potential. Shares have lost 26.1% over the past six months.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into FedEx’s performance.
According to the tool, compared to the previous year, FedEx’s website traffic registered a 25.2% decline in global visits in February. Moreover, the website traffic has decreased nearly 18% year-to-date against the same period last year.
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