Goldman Sachs Lowers Price Target on Fedex (FDX)

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 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.

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