TLDR
- FedEx stock climbed 3.3% to $319.90 in mid-day trading on Wednesday
- Barclays issued a Buy rating and Stephens resumed coverage with an Overweight rating and a $380 price target
- Around 5,000 FedEx pilots ratified a new collective bargaining agreement, removing a key operational risk
- FedEx Freight was upgraded to Strong-Buy by Stephens following its June 1 spin-off completion
- FedEx is guiding for 20% adjusted EPS growth through year-end
FedEx (FDX) stock rose 3.3% to $319.90 in mid-day trading on Wednesday, driven by a wave of positive analyst actions and a resolved labor dispute.
Barclays issued a Buy rating on FDX in pre-market hours. Stephens followed by resuming coverage with an Overweight rating and a $380 price target.
Stephens said the transport cycle is broadly improving, with more upside potential than downside risk ahead. The firm added that momentum should carry well into 2027 and that investors should consider buying rising earnings at historically elevated multiples.
The two moves pushed the total analyst consensus to 18 buy ratings, against 6 holds and 2 sells.
Stephens also upgraded the newly independent FedEx Freight to a Strong-Buy rating today, adding further positive momentum to the broader FedEx ecosystem.
Pilot Deal Removes Key Risk
Around 5,000 FedEx pilots, represented by the Air Line Pilots Association, ratified a new collective bargaining agreement. The deal removes a labor risk that had been weighing on investor confidence in the stock.
A media endorsement labeling recent weakness in FDX a buying opportunity also helped drive retail interest into Wednesday’s session.
The broader market gave FedEx a helping hand too. The S&P 500 added 0.7%, the Nasdaq advanced 0.9%, and the Dow Jones gained 0.4% on the day.
Leaner Business Following Restructuring
FedEx completed the spin-off of FedEx Freight on June 1, and sold its $1.4 billion supply chain unit to CMA CGM. The moves have sharpened focus on the company’s core delivery business.
The company is guiding for 20% adjusted EPS growth through year-end.
Even with Wednesday’s gains, FDX still trades well below its 52-week high of $404.03.
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