FedEx price target raised to $288 from $259 at Stifel

Stifel raised the firm’s price target on FedEx (FDX) to $288 from $259 and keeps a Buy rating on the shares after “taking a closer look at FedEx’s near-term earnings power” following the announcement that “chief competitor UPS (UPS) reached a tentative agreement with its Teamsters Union. The firm expects UPS to seek to offset annual wage cost inflation in mid-to-high single digits over the next five years with commensurate price increases in order to maintain margins over the contract term and since the domestic parcel industry is essentially a duopoly, it believes UPS’ cost recovery will bolster market pricing for all participants, including FedEx, the analyst tells investors.