FedEx news to drive ‘substantial’ shareholder returns, says Barclays

The announcement of "One FedEx" and the merging of Express and Ground operations is a "monumental event that could herald an era of material profit improvements and substantial shareholder returns," Barclays analyst Brandon Oglenski the analyst tells investors in a research note. The firm says combining overlapping pickup, delivery and linehaul operations of the FedEx Express and Ground networks in the U.S. should drive significant improvement in labor productivity and asset efficiency, supporting meaningful profitability gains. It keeps an Overweight rating on the shares with a $280 price target.