BUZZ-Street View: Bullish calls give FedEx momentum in a messy macro environment

Reuters
Mar 20
BUZZ-Street View: <a href="https://laohu8.com/S/BLSH">Bullish</a> calls give FedEx momentum in a messy macro environment

** FedEx FDX.N said on Thursday that global demand has remained steady in early March despite the conflict in Iran and added that fuel surcharges are helping protect its profit margins from rising fuel prices.

** Shares of the company were up 1.5%

DELIVERED AGAIN

** TD Cowen ("buy," PT: $426) says FedEx is benefiting from "high-quality business wins" and continued progress on revenue‑quality initiatives that are lifting yields and helping offset macro headwinds, including Middle East disruptions and higher compensation costs

** Raymond James ("outperform," PT: $415) believes "the recently announced spin-out of FedEx Freight into a standalone company should serve as a value-unlocking event and will put more scrutiny on the operations of the Freight segment"

** Wells Fargo ("overweight," PT: $450) says FedEx's Express unit "delivered again," citing stronger-than-expected volume, pricing and margins; notes that transformation benefits are emerging as the company now expects about $1 billion in cost savings this year

** Morningstar (fairvalue: $272) says will watch how rising oil prices and continued tensions in the Middle East feed through to shipping costs in the coming weeks

(Reporting by Rashika Singh in Bengaluru)

((rashika.singh@thomsonreuters.com))

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