Loop Capital last night upgraded FedEx (FDX) to Buy from Hold with a price target of $365, up from $288. The company reported a modest fiscal Q2 beat versus consensus as cost savings in its Express business offset some margin compression in its Freight business, which is now going to be spun off at some point in the next 18-months, the analyst tells investors in a research note. The firm cites the “value creating spin” and recent pullback in the stock price for the upgrade. Loop’s “back of the envelope math is still fairly compelling.”
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Read More on FDX:
- FedEx Stock (FDX) Blasts Up on Freight Division Spin-Off News
- FedEx Announces Q2 Earnings and Strategic Plans
- FedEx upgraded to Buy from Hold at Loop Capital
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- FedEx sees ‘unmatched’ value proposition with two separate companies
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
