FedEx price target lowered to $318 from $335 at Evercore ISI

Evercore ISI lowered the firm’s price target on FedEx to $318 from $335 and keeps an Outperform rating on the shares. After FedEx reported adjusted Q1 EPS of $3.60, the firm says that was “substantially below our forecast of $4.66” and the average Street estimate of $4.75, with the drivers of the miss being softer-than-expected demand, mix shifts that weighed on yield, and a shortfall in the quarterly structural cost savings associated with the DRIVE plan. The firm, which notes that this is the second quarterly stumble since DRIVE was initiated, cut its FY25 EPS estimate to $19.86 from $20.95 and its FY26 forecast to $24 from $24.36.