JPMorgan raised the firm’s price target on FedEx (FDX) to $370 from $366 and keeps an Overweight rating on the shares. The firm expects FedEx shares “will materially outperform” as the sum-of-the-parts valuation is “officially put into play” with the Freight spin. There will be some debate as to which multiples should be used, especially after a weaker fiscal Q2 for the division, but the probability of a spin is now 100% versus 50% “at best” previously, the analyst tells investors in a research note. JPMorgan sees further upside to the stock beyond the 9% rally last night. It believes the spin is not yet priced into shares.
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Read More on FDX:
- Loop upgrades FedEx to Buy on ‘value creating spin’
- FedEx Stock (FDX) Blasts Up on Freight Division Spin-Off News
- FedEx Announces Q2 Earnings and Strategic Plans
- FedEx upgraded to Buy from Hold at Loop Capital
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