FedEx price target raised to $290 from $280 at BMO Capital

BMO Capital raised the firm’s price target on FedEx to $290 from $280 and keeps a Market Perform rating on the shares. The company’s Q1 earnings beat was primarily driven by progress on cost saving programs, particularly at Ground, as well as volume diversions from UPS and Yellow as well as continued focus on revenue quality, the analyst tells investors in a research note. These more than offset the ongoing macro and cyclical challenges for FedEx, the firm added, noting that the stock represents the best risk/reward in the parcel/air freight space given the sizable cost savings opportunity and the potential for strong positive leverage once demand recovers.