JPMorgan analyst Brian Ossenbeck raised the firm’s price target on FedEx to $233 from $199 and keeps a Neutral rating on the shares post the fiscal Q3 report. The analyst expects the shares will react favorably after a second straight earnings beat despite a sales miss as management’s cost cutting efforts appear to be quickly taking hold in Ground and to a lesser extent in Express. However, volumes only appear to be stabilizing on easier comps and not recovering activity while yields will also come under pressure in the coming quarters on tougher comps, fading fuel surcharges, and negative mix as Ground Economy de-marketing ends and International Economy ramps up, the analyst tells investors in a research note.
Published first on TheFly
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