JPMorgan cuts FedEx target but sees ‘relief rally’ in shares

JPMorgan analyst Brian Ossenbeck lowered the firm’s price target on FedEx to $179 from $184 and keeps a Neutral rating on the shares following last night’s fiscal Q2 results. The analyst expects a "relief rally" in FedEx shares despite the "negative optics" of a 12% miss relative to second half of fiscal 2023 consensus estimates after management stabilized Express profitability faster than expected following the negative preannouncement three months ago. Sentiment was skewed positive into the print and FedEx can outperform peers on a relative basis in the near term "as it becomes a hiding spot of sorts having already reported results and cut guidance," Ossenbeck tells investors in a research note.