FedEx price target raised to $185 from $160 at Wells Fargo

Wells Fargo analyst Allison Poliniak-Cusic raised the firm’s price target on FedEx to $185 from $160 and keeps an Equal Weight rating on the shares. Even after substantial revisions, the analyst believes EPS estimates have downside risk, and remains cautious with shares. As expected, the operating environment has become more challenging, Poliniak-Cusic says. However, there is an additional and significant 20% seasonal headwind to EBIT, she adds. The analyst further argues that while cost structure improvement will provide an offset, a sharp improvement is unlikely.