Susquehanna upgrades FedEx on long-term upside opportunity

Susquehanna analyst Bascome Majors upgraded FedEx to Positive from Neutral with a price target of $315, up from $225. The analyst views the long-term upside opportunity in FedEx from cost rationalization and a valuation re-rating as greater than the near-term cyclical risk. The firm’s look at 25 years of FedEx volumes versus share performance suggests investors buying the volume declines seen in recent quarters typically do well over the next 12 months on both an absolute and market-relative basis. Susquehanna adds that the company’s fiscal 2024 guidance fully absorbs both the return of incentive comp and unwind of pandemic pricing in international export parcel.