Global transportation and logistics company FedEx Corporation (FDX) announced that its subsidiary FedEx Logistics has opened a office in Seoul, South Korea.
Korea’s addition is in line with the company’s strategic initiative of expanding its network worldwide and enhancing its presence in countries with great potential.
Korea is an important player in international trade. The new office in Korea will offer one-source, end-to-end logistics solutions and a wide range of services, including international air and ocean cargo services, customs brokerage arrangements and trade solutions. (See FedEx stock charts on TipRanks)
The President of FedEx Trade Networks, Patrick Moebel, said, “The new office in Korea complements our global operations, strengthening our position to better serve our customers around the world.”
Moebel added, “Global customers who trade with Korea and Korean customers alike will benefit from the fully customizable solutions offered by FedEx Logistics. We deliver for our customers by helping them navigate the complexities of global commerce.”
Last week, following the company’s Q1 results, Stifel Nicolaus analyst J. Bruce Chan maintained a Buy rating on the stock but lowered the price target to $283 from $344 (24.9% upside potential).
Chan was disappointed by the Q1 earnings miss due to labor shortage. He said, “The source of weakness was not a surprise, but the magnitude was.”
He added that while labor cost inflation issues will continue to be a near-term drag, FedEx remains “a compelling large-cap Buy” based on secular Ecommerce megatrends.
Overall, the stock commands a Strong Buy consensus rating based on 17 Buys and 4 Holds. The average FedEx price target of $308.80 implies 36.33% upside potential to current levels.
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