Analyst David Vernon from Bernstein maintained a Hold rating on FedEx and decreased the price target to $247.00 from $249.00.
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David Vernon has given his Hold rating due to a combination of factors impacting FedEx’s current and future performance. The expiration of de-minimis exemptions and recent tariff changes have introduced additional challenges, prompting a cautious near-term outlook. Vernon’s estimates are aligned with the company’s guidance, but he notes the difficulty in making firm predictions given the uncertain macroeconomic environment and ongoing restructurings in the U.S. and Europe.
While consensus anticipates growth in FY2027, Vernon sees potential downside risks, particularly if changes in de minimis rules are not fully accounted for in forward estimates. Although the stock might benefit from a potential shift to a lower interest rate environment, Vernon believes the fundamentals are not strong enough to justify upward revisions to optimistic earnings forecasts. Consequently, he maintains a Market-Perform rating with a price target of $247.
Vernon covers the Industrials sector, focusing on stocks such as United Airlines Holdings, Norfolk Southern, and Union Pacific. According to TipRanks, Vernon has an average return of 7.9% and a 55.49% success rate on recommended stocks.
In another report released on September 11, Bank of America Securities also downgraded the stock to a Hold with a $240.00 price target.