Bank of America Securities analyst Ken Hoexter has reiterated their neutral stance on FDX stock, giving a Hold rating on September 17.
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Ken Hoexter has given his Hold rating due to a combination of factors impacting FedEx’s financial outlook. Despite FedEx’s recent earnings per share (EPS) exceeding expectations, the company’s future projections indicate a slight decline in EPS year-over-year, even with anticipated revenue growth. This is attributed to various challenges, including a $1 billion operating income headwind from global trade impacts and the expiration of a USPS contract, which are only partially offset by cost savings initiatives.
Additionally, while FedEx’s Express segment showed strong performance, the Freight segment experienced a decline in operating income. The company’s strategic initiatives, such as the upcoming spin-off of FedEx Freight, are balanced by broader economic uncertainties and inflationary pressures. Consequently, Ken Hoexter maintains a Neutral rating with a price objective of $244, reflecting a cautious outlook amid these mixed signals.
According to TipRanks, Hoexter is a 3-star analyst with an average return of 1.2% and a 45.80% success rate. Hoexter covers the Industrials sector, focusing on stocks such as CSX, FedEx, and United Parcel.
In another report released on September 17, Evercore ISI also downgraded the stock to a Hold with a $243.00 price target.