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Why This FedEx Analyst Sees Improving Express, Ground Prospects

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Priya Nigam
·1 min read
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A proprietary KeyBanc Capital markets index ndicates continued strong business-to-consumer volumes in early 2021, the sell-side firm said in a note.

FedEx Corporation (NYSE: FDX) faces a rational pricing environment and the opportunity to gain market share as United Parcel Service, Inc. (NYSE: UPS) “takes a more measured approach to volume growth,” according to KeyBanc.

The FedEx Analyst: Todd Fowler upgraded FedEx from Sector Weight to Overweight and established a $350 price target.

The FedEx Takeaways: B2C volumes are up 58% year-to-date, consistent with the levels in the second half of 2020, Fowler said in the upgrade note.

“Further, we are encouraged by indications of resilient airfreight dynamics with demand improving against limited incremental capacity which may sustain Express load factors and margins intermediately,” the analyst said.

“Lastly, we view broader improvements in industrial production and economic activity as increasingly favorable for B2B demand.”

The analyst raised the FedEx earnings estimate for fiscal 2022 from $19.50 per share to $20.70 per share to reflect “an improved Express and Ground outlook.”

FDX Price Action: Shares of FedEx were up 0.18% at $291.32 at last check Tuesday.

Latest Ratings for FDX

Apr 2021

Keybanc

Upgrades

Sector Weight

Overweight

Mar 2021

Vertical Research

Initiates Coverage On

Buy

Mar 2021

Goldman Sachs

Maintains

Buy

View More Analyst Ratings for FDX
View the Latest Analyst Ratings

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