FedEx initiated with an Equal Weight at Wells Fargo

Wells Fargo initiated coverage of FedEx with an Equal Weight rating and $275 price target. The firm sees long-term value in the shares and expects the company’s transformation to improve margins, returns, and cash flows. However, near-term risks are “abound” and consensus estimates are mis-modeling fiscal 2024 while the Express/Ground integration looms, the analyst tells investors in a research note.