Analysts Cut FedEx Price Targets After 'Disappointing' Q1 Results

Analysts Cut FedEx Price Targets After 'Disappointing' Q1 Results
FedEx Corp (NYSE:FDX) reported worse-than-expected Q1 earnings, which disappointed Wall Street analysts.

Analyst Reactions: Raymond James analyst Patrick Tyler Brown downgraded FedEx Corp (NYSE: FDX) to Market Perform from Outperform. The analyst is concerned that numbers remain at risk as the guidance assumes continued growth in Industrial Production and trade, labor inefficiencies abate, and less-controllable "bad guys" from last year don't recur.

Citi analyst Christian Wetherbee lowered the price target to $300 from $360 (implying an Upside of 19%) and maintained a Buy rating on the shares post the Q1 earnings call.

Wetherbee says either FedEx has done a "particularly poor job" managing core cost inflation, or its 9% cost growth ex-labor and unique items is an "ominous indicator" for the rest of transportation in Q3. Wetherbee thinks to move estimates toward the lower end of the company's earnings guidance range, as he's unclear on the drivers in Q2 and beyond that will reverse the cost headwinds.

Barclays analyst Brandon Oglenski lowered the price target to $345 (implying an upside of 36.87%) from $375 and maintained an Overweight rating on the shares.
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