FedEx spin of Freight business could unlock $10B-$20B, says Barclays

Barclays analyst Brandon Oglenski says the upcoming conclusion to the strategic assessment of FedEx’s (FDX) Freight business will have a “profound direct impact” on shareholders. A decision to spin off the Freight business could unlock $10B-$20B of incremental equity value for shareholders, with greater management focus and improved capital discipline likely supporting stronger long-term outlooks across both standalone businesses, the analyst tells investors in a research note. The firm believes the “financial incentives are powerful on paper.” It keeps an Overweight rating on FedEx with a $365 price target