FedEx price target raised to $260 from $235 at BMO Capital

BMO Capital analyst Fadi Chamoun raised the firm’s price target on FedEx to $260 from $235 but keeps a Market Perform rating on the shares. The company has reset revenue expectations lower, which is not surprising given the worsening macro backdrop, but its management also provided greater visibility into the cadence and path to achieve $4B in structural cost savings by FY25, the analyst tells investors in a research note. BMO adds that it is encouraged by the increased emphasis on lowering capital intensity and expanding ROIC, which could deliver expansion in the FedEx valuation multiple over time.