Street to react negatively if FedEx target ‘overly optimistic,’ says Jefferies

Ahead of FedEx reporting its fiscal Q4 results on Tuesday, June 20, Jefferies thinks “all eyes will be on” management’s FY24 guidance. The firm sees a “realistic” EPS range between $15-$21, which is “largely bracketing” the current consensus estimate of $18.38 and the firm’s own estimate of $18.70. However, guidance with EPS “materially north of $20 would be viewed as a stretch-goal” and the firm thinks “the Street would react negatively to an overly optimistic target,” adds the analyst, who keeps a Hold rating and $230 price target on FedEx shares.