FedEx price target raised to $180 from $145 at Morgan Stanley

Morgan Stanley analyst Ravi Shanker raised the firm’s price target on FedEx to $180 from $145 and keeps an Equal Weight rating on the shares. The "One FDX" announcement puts the company on the path to the "holy grail" of integration gains, but will likely involve smaller steps and take longer than headlines suggest, the analyst tells investors. However, DRIVE details "may not be incrementally positive to expectations" and the firm still believes there is risk to consensus expectations/guidance, though it adds that its "big" price target increase reflects the fact that earnings have likely stopped falling and the market is willing to give FedEx credit for cost cutting potential.