FedEx price target lowered to $303 from $306 at Stifel

Stifel analyst J. Bruce Chan lowered the firm’s price target on FedEx to $303 from $306 and keeps a Buy rating on the shares. FedEx announced the termination of its two-decade-long agreement with the USPS to provide domestic air linehaul services, the analyst tells investors in a research note. FedEx is in the midst of a multi-year network rationalization, and freeing itself from what was likely to have been a low-to-no profitability contract that just offers base load density may enable a denser, more profitable, and higher-utilized network in the medium-term, Stifel says.