Bernstein last night downgraded FedEx (FDX) to Market Perform from Outperform with a price target of $316, down from $337, ahead of the Q2 earnings and the impending less-than-truckload freight spin decision. Longer-term Bernstein still sees value in the stock, but adding at these levels ahead of increasing execution, event, and policy risk “seems difficult to defend,” the analyst tells investors in a research note. As such, the firm is taking a “tactical pause” and downgrading the shares ahead of a “widely expected reset” in the near-term guidance framework and uncertainty around meeting “high” freight spinoff expectations.
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Read More on FDX:
- FedEx downgraded to Market Perform from Outperform at Bernstein
- FedEx Could Unlock $20B for Investors with a Freight Spinoff
- FedEx spin of Freight business could unlock $10B-$20B, says Barclays
- How to Possibly Profit from FedEx Stock’s (FDX) Rising Volatility with Options
- FedEx price target raised to $365 from $350 at Barclays
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
