In a report released today, Ravi Shanker from Morgan Stanley maintained a Sell rating on FedEx, with a price target of $200.00.
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Ravi Shanker has given his Sell rating due to a combination of factors impacting FedEx’s financial outlook. The company is facing challenges from domestic B2C weakness, international trade policy headwinds, and ongoing industrial struggles, particularly in the Freight segment. These issues have contributed to a forecasted adjusted EPS that is approximately 3% below consensus estimates, positioning it near the lower end of the company’s guidance.
Additionally, while there is slight growth expected in the Express segment, it is counterbalanced by a decline in Freight, leading to an overall flat year-over-year revenue projection. The international segment, especially in priority volumes and Transpacific lanes, continues to be a drag due to trade policy changes. The lack of near-term catalysts, combined with macroeconomic uncertainties and the transitional phase of cost management programs, further supports the Sell rating as the stock remains rangebound with muted sentiment.