FedEx earnings expectations need to come down, says Deutsche Bank

Deutsche Bank analyst Amit Mehrotra says the "bad news" from FedEx’s fiscal Q2 results is that the full year guidance implies second half earnings expectations need to come down by about 13% even though the Q2 results were a bit ahead of consensus. "In absolute terms, it was a weak quarter," Mehrotra tells investors in a research note. On the positive side, it was clear that FedEx’s cost actions finally took hold, adds the analyst. Mehrotra has a Buy rating on FedEx with a $217 price target.