FedEx price target raised to $325 from $310 at BMO Capital

BMO Capital raised the firm’s price target on FedEx to $325 from $310 and keeps a Market Perform rating on the shares. The analyst cites the company’s in-line Q4 results and guidance along with the management announcing a strategic review of its FedEx Freight operations. There is significant opportunity to unlock shareholder value should the segment be spun off or sold, the firm tells investors in a research note, adding however that its conviction is not high enough for a more constructive rating due to structural profitability challenges in Ground segment.