Fedex Halts Domestic Express Freight Services Due to Omicron

Amid rising Omicron cases, FedEx Corporation (NYSE: FDX) suspended its domestic express freight services as it faces staff shortages, according to Reuters.

Following the news, shares of the multinational transportation conglomerate gained 2.5% on February 2 to close at $252.

Details

FedEx issued a warning last month that an upsurge in Omicroncases has led to staff shortages.

Additionally, there are delays in shipments transported on aircraft as several U.S. airlines were forced to cancel flights due to bad weather conditions as well as a shortage of staff.

Consequentially, FedEx has suspended the economy domestic FedEx express freight, which includes FedEx two-day freight and FedEx three-day freight services.

Positively, international economy freight pick-up services, which had been paused earlier, resumed on Monday.

Analysts Recommendation

Last week, Goldman Sachs analyst Jordan Alliger maintained a Buy rating on FedEx with a price target of $343 (36.1% upside potential).

The consensus among analysts is a Strong Buy based on 12 Buys versus 2 Holds. The average FedEx price target of $309.71 implies 23.03% upside potential from current levels.

Website Traffic 

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into FedEx’s performance.  

According to the tool, the FedEx website has recorded year-to-date website growth of 15.74% so far this year.

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