FedEx price target raised to $260 from $240 at Argus

Argus analyst John Eade raised the firm’s price target on FedEx to $260 from $240 and keeps a Buy rating on the shares. The company has benefited over the past few years from growth in the consumer sector, and especially from growth in e-commerce, but negative factors have emerged, including trade disputes, COVID-19, and inflationary pressures that have constrained growth, the analyst tells investors in a research note. The firm adds however that the new management appears to be placing greater emphasis on shareholder returns with help from an activist investor, also stating that FedEx’s balance sheet remains solid, and the company recently signaled confidence in its outlook with a 10% dividend hike and an expanded share repurchase program.