Oppenheimer analyst Scott Schneeberger maintained a Buy rating on FedEx (FDX) today and set a price target of $192. The company’s shares closed yesterday at $181.41.
Schneeberger wrote:
“F3Q19 (February-end) adjusted EPS of $3.03 exceeded our estimate of $2.96, but was below $3.08 consensus. F3Q19 revenue/adjusted operating income both underperformed our estimates/consensus, respectively. Although revenue/adjusted operating income grew +3%/+2% y/y, respectively, culprits in the quarter prompting underperformance included lower than expected Ground yield/revenue, elevated Ground expenses (purchased transportation and six-day-per-week operations launch), and lower than expected Express international and US yield/revenue (primarily higher growth in lower-yielding services and lower weight/shipment). FedEx appears to be making initial TNT improvement progress, but Express integration work duration/expense expectations increased. FedEx reduced FY19 adjusted EPS a second consecutive quarter, this time from $15.50-16.60 to $15.10-15.90 (-1% to +4% y/y).”
According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 7.1% and a 61.7% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, General Finance, and XPO Logistics.
FedEx has an analyst consensus of Strong Buy, with a price target consensus of $214.40, implying a 18.2% upside from current levels. In a report issued on March 7, Citigroup also maintained a Buy rating on the stock with a $210 price target.
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The company has a one-year high of $266.67 and a one-year low of $150.94. Currently, FedEx has an average volume of 2.24M.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FDX in relation to earlier this year. Last month, John Merino, the CVP PRIN ACCT OFFICER of FDX sold 2,300 shares for a total of $419,152.
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FedEx Corp. engages in the provision of a portfolio of transportation, e-commerce, and business services. It operates through the following segments: FedEx Express, TNT Express, FedEx Ground, FedEx Freight, FedEx Services, and Other. The FedEx Express segment consists of domestic and international shipping services for delivery of packages, and freight.
