The Dividend Daily

Analysts at Piper Jaffray initiated coverage on package delivery giant FedEx Corporation (FDX) on Friday with an “Overweight” rating.

The analyst also boosted its price target on the stock to $100 from a previous $82.50. FedEx shares had closed at $80.76 on Thursday.

The Piper analyst noted that “We believe consensus estimates remain materially too low and do not fully account for FDX’s future market share gains and Express operating margin potential. Our above-consensus estimates primarily reflect upside operating margin expansion at Express given a leaner cost structure and international volume growth and greater revenue growth in Ground and LTL.”

FedEx shares were mostly flat in premarket trading Friday.

The Bottom Line
We removed shares of FDX from our “recommended” list back on Oct. 1, when the stock was trading at $75.22. The company has a .54% dividend yield, based on last night’s closing stock price of $80.76. The stock has technical support in the $74-$75 price area. If the shares can firm up, we see overhead resistance around the $83-$87 price levels. We would remain on the sidelines for now.

FedEx Corporation (FDX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.