FedEx initiated with a Buy at HSBC

HSBC initiated coverage of FedEx with a Buy rating and $330 price target. The analyst says even partial success in the company’s efforts to reduce costs by $6B by fiscal 2027 “could go a long way towards boosting investor confidence.” The firm forecasts FedEx will narrow the EBIT margin gap with UPS by integrating its ground and express delivery networks. It prefers FedEx on earnings growth versus a decline for UPS in its forecast period.