FedEx price target lowered to $265 from $273 at Credit Suisse

Credit Suisse analyst Ariel Rosa lowered the firm’s price target on FedEx to $265 from $273 and keeps an Outperform rating on the shares. The company’s Q4 results were mixed and its initial FY24 outlook was “disappointing” as the management acknowledged that its Express business continues to suffer from a bloated cost structure and unfavorable contractual commitments, the analyst tells investors in a research note. Credit Suisse adds that that FedEx’s Express margins should get better from here, but also warns that it may get “considerably more challenging” against weak volume demand.