FedEx Price Target Surges to $280 Following Analyst Upgrades

FedEx Corporation’s stock price target has been raised to $280.00 by Wells Fargo & Company, reflecting a significant increase from its previous target of $250.00. This adjustment was noted in a research report published on the morning of September 22, 2023, where Wells Fargo maintained an “equal weight” rating on the shipping giant’s shares.

Several other financial institutions have similarly reassessed their positions on FedEx. Daiwa Capital Markets increased its price target from $232.00 to $240.00 and assigned a “neutral” rating in a note issued on September 22, 2023. Susquehanna also raised its target, adjusting it from $285.00 to $300.00, while maintaining a “positive” rating, in a report released on September 19, 2023.

Wolfe Research made a notable upward adjustment, raising its target from $254.00 to $298.00 as of October 7, 2023. Meanwhile, Stephens reaffirmed an “overweight” rating and set a target of $260.00 on October 14, 2023. In contrast, Stifel Nicolaus adjusted their price target downward from $308.00 to $296.00, while still maintaining a “buy” rating.

A comprehensive analysis reveals that among the research community, one analyst has rated FedEx with a “Strong Buy” rating. In total, fifteen analysts have issued a “Buy” rating, eleven have assigned a “Hold” rating, and one has issued a “Sell” rating. According to data from MarketBeat, FedEx holds a consensus rating of “Moderate Buy” with an average target price of $273.08.

Recent Earnings Performance

FedEx recently announced its quarterly earnings on September 18, 2023, reporting earnings per share of $3.83, surpassing the consensus estimate of $3.71 by $0.12. The company also demonstrated a return on equity of 16.33% and a net margin of 4.65%. Revenue for the quarter reached $22.20 billion, exceeding the predicted $21.74 billion and reflecting a 3.1% increase compared to the same period last year. For the fiscal year 2026, FedEx has projected earnings per share between $17.200 and $19.000, with analysts forecasting an average of $19.14 for the current year.

Institutional Investor Activity

Several institutional investors have made adjustments to their holdings in FedEx. In the third quarter, Grey Fox Wealth Advisors LLC acquired a new position worth approximately $27,000. Similarly, Twin Peaks Wealth Advisors LLC invested $28,000 in the second quarter. NewSquare Capital LLC increased its stake by 121.8% during the same period, now holding 122 shares valued at $28,000 after purchasing an additional 67 shares. Other notable transactions include Abich Financial Wealth Management LLC purchasing shares worth $39,000 and WPG Advisers LLC acquiring a stake valued at approximately $43,000.

Hedge funds and other institutional investors currently hold 84.47% of FedEx’s stock, indicating strong interest in the company’s long-term performance.

FedEx Corporation is a global leader in transportation, e-commerce, and business services, operating through various segments including FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. As the company continues to evolve, these latest financial insights will be crucial for investors and analysts monitoring its trajectory in the competitive logistics sector.