FedEx remains high conviction idea in transports at Barclays

Barclays says that while FedEx’s fiscal Q1 package demand was soft, management cost reduction initiatives and competitive share gains at Ground and Freight “provide a buffer” to the fiscal 2024 results. The firm is impressed with management’s actions to reduce expenses and improve corporate margins in fiscal 2024 and beyond, making FedEx one of its highest conviction ideas in transports. Barclays keeps an Overweight rating on the shares with a $300 price target.