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Oppenheimer Thinks FedEx’s Stock is Going to Recover


In a report released today, Scott Schneeberger from Oppenheimer maintained a Buy rating on FedEx (FDX), with a price target of $200. The company’s shares closed yesterday at $170.59, close to its 52-week low of $150.94.

Schneeberger observed:

“We recently met with FedEx management at its headquarters. Numerous topics were covered across the company’s portfolio/strategic perspective. It was timely considering FedEx recently (12/18/18) reduced its FY19 (May-end) Express segment outlook, primarily on international macro conditions (global trade)/TNT integration challenges post that sizable acquisition’s June 2017 cyberattack. Domestically, FedEx hasn’t yet encountered indications of economic softness and expressed expectations of continued margin improvement in its Ground and Freight segments. While it’s clear FedEx needs to demonstrate operational/financial improvement in its Express segment, we view the stock’s substantial sell-off as overdone. We’re maintaining our recently reduced (12/18/18) FY19/FY20 estimates and modifying our price target from $234 to $200, which represents 12.1x our CY19E adjusted EPS of $16.57.”

According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 7.7% and a 61.8% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, General Finance, and XPO Logistics.

Currently, the analyst consensus on FedEx is a Strong Buy with an average price target of $217.53, a 27.5% upside from current levels. In a report issued on January 7, Berenberg Bank also maintained a Buy rating on the stock with a $245 price target.

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FedEx’s market cap is currently $44.53B and has a P/E ratio of 9.30. The company has a Price to Book ratio of 2.31.

Based on the recent corporate insider activity of 24 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. Earlier this month, John Edwardson, a Director at FDX bought 21,730 shares for a total of $1,680,842.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.

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