FedEx price target lowered to $333 from $340 at UBS

UBS lowered the firm’s price target on FedEx to $333 from $340 and keeps a Buy rating on the shares. The firm’s analysis suggests the expectation for FedEx for Q4 EPS sets a reasonable bar, and the firm assumes only 100 basis points of sequential margin improvement in Express, which is conservative compared to the 10 year average of 370 bp of sequential improvement, the analyst tells investors in a research note. FedEx is facing multiple headwinds which dampen the impact of DRIVE in FY25, UBS says, including from the loss of the USPS contract, higher incentive compensation, lower international yields, and two fewer operating days.