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Fly News Breaks for October 29, 2019
Oct 29, 2019 | 07:05 EDT
Wells Fargo analyst Allison Poliniak-Cusic initiated coverage of FedEx with an Outperform rating and $189 price target. In a research note to investors, the analyst says she believes shares have well priced the issues of lower volumes in Express from international weakness, ongoing issues with the TNT integration and increased expenses from investments into the shares and sees upside potential to shares based on the view that FY20 could prove to be the trough in earnings as the TNT integration moves toward completion, international demand stabilizes or inflects higher when/if a trade agreement materializes, and FedEx grows into its recent investments, acting as catalysts for the shares.
News For FDX From the Last 2 Days
Dec 3, 2019 | 06:30 EST
KeyBanc analyst Todd Fowler lowered his estimates for FedEx ahead of the company's Q2 earnings report to reflect ongoing macro weakness negatively impacting mix, as well as integration and investment costs for Express & Ground. The analyst now sees FY20 EPS of $12.00, down from $12.25, including a Q2 EPS of $2.75, down from $2.94, and FY21 EPS of $13.75, down from $14.25. Fowler tells investors in a research note that he doesn't expect Q2 to be a positive inflection, with cost actions expected to more fully materialize later in FY20 or FY21, but says Express & Ground margins are likely at an interim bottom with valuation limiting more meaningful downside. He keeps a Sector Weight rating on the shares.