FedEx Corp. Was Upgraded To Overweight Price Target Raise To $360



FedEx Corp. (NYSE:FDX) shares rose Tuesday, after Barclays analyst Brandon Oglenski upgraded the package-delivery company to overweight from equal weight and lifted his price target 50% to $360 from $240.

Oglenski acted based on an “abundance of growth opportunities” for FedEx thanks to the explosion of e-commerce during the coronavirus pandemic.

FedEx recently traded at $287.29, up 2.1%, and earlier touched a record $297.66. It has nearly doubled year to date.

FedEx’s Ground network “provides the lowest cost final mile delivery of the large private” U.S. delivery services, Oglenski said.

FedEx could be subject to “plenty of near-term volatility, given the cross-currents of short-term investors seeking plays on work-from-home or vaccine distribution,” he said.

But long-term investors should keep their eyes on “meaningful changes” in FedEx’s operating culture that may “open the door to sorely needed margin improvement and perhaps even adequate financial returns in a capital-intensive business.”

U.S. Business-to-consumer volumes are surging, and FedEx's longer-term growth prospects haven’t evaporated. 

"Its extensive international shipping network is extraordinarily difficult and costly to duplicate, global trade will eventually improve, and e-commerce tailwinds should remain favorable for years to come.” say the analyst.