FedEx price target raised to $235 from $210 at BMO Capital

BMO Capital raised the firm’s price target on FedEx to $235 from $210 and keeps a Market Perform rating on the shares. The company’s Q3 were above expectations as strong pricing, revenue quality initiatives, and progress on cost savings more than offset weaker than expected volumes, the analyst tells investors in a research note. Progress on the cost savings programs and guidance should be well-received and stock outperformance may continue to be supported going into the April 5 Investor event, though there is not enough conviction for a more constructive rating due to the structural profitability challenges in Ground and limited visibility into the self-help recovery in Express operating margins, BMO Capital added.