Morgan Stanley Sees Strong Q1 Performance From FedEx Amid Industry Turbulence
Portfolio Pulse from Shivani Kumaresan
Morgan Stanley analyst Ravi Shanker has reiterated an Equal-weight rating on FedEx Corp (FDX) shares and raised the price target from $186 to $200. The analyst expects F1Q24 to come in just above consensus at the EBIT level and estimated an adjusted EPS of $3.69. The analyst believes FedEx will benefit from disruptive events in the quarter, such as UPS labor negotiations and the Yellow Chapter 11 filing. However, the analyst does not believe the parcel environment has accelerated materially.
September 11, 2023 | 5:49 pm
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NEGATIVE IMPACT
Morgan Stanley analyst believes FedEx will benefit from UPS's labor negotiations. However, the analyst does not believe the parcel environment has accelerated materially.
The ongoing labor negotiations at UPS could potentially disrupt its operations, which could negatively impact its stock price in the short term. This could also lead to a shift in market share towards FedEx.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Morgan Stanley analyst expects FedEx's F1Q24 to beat consensus at the EBIT level and estimates an adjusted EPS of $3.69. The analyst believes FedEx will benefit from UPS labor negotiations and the Yellow Chapter 11 filing.
The analyst's positive outlook on FedEx's Q1 performance and the raised price target could potentially drive the stock price up in the short term. The expected benefits from UPS's labor negotiations and Yellow's Chapter 11 filing could also positively impact FedEx's performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100