FedEx downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Brian Ossenbeck downgraded FedEx (FDX) to Neutral from Overweight with a price target of $274, down from $284. The firm says its recent channel checks in the less-than-truckload industry warrant a lower multiple in its sum-of-the-parts analysis for FedEx’s freight segment. JPMorgan is are increasingly concerned the company’s full year earnings guidance is at risk since it embeds a rebound in freight fundamentals. The high cost of separating the freight segment and the recent operational underperformance will likely weigh on the less-than-truck multiple following the spinoff, adds the firm.