Goldman Sachs Lowers Price Target on Fedex (FDX)
Goldman Sachs reported on Friday that it has reduced its price target on shipping company, FedEx Corporation (FDX).
The firm has reiterated a “Buy” rating on FDX, but has lowered its price target slightly from $115 to $114. This price target suggests a 12% increase from the stock’s current price of $100.20.
An analyst from the firm noted, “global airfreight flows have been mixed, with bellwether terminals such as HACTL pointing to softer-than-anticipated throughput,” said Kim. “The industry along with FDX continues to adjust capacity commensurately with demand, which we expect to support pricing over the medium-term.”
“The challenge for FDX is to adjust its cost structure to support the strong growth from international deferred. We would expect further rationalization of service frequencies on the East/West routes.”
Looking forward, the firm has lowered its fourth quarter earnings from $2.17 per share to $1.97 per share. FY2014 estimates have been reduced by -1%, and FY2015 by -7%.
FedEx shares were up 61 cents, or 0.61% during Friday morning trading. The stock is up 9% YTD.
The Bottom Line
Shares of FedEx Corporation (FDX) have a 0.60% yield, based on Friday morning’s price of $100.17.
FedEx Corporation (FDX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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