Jefferies Raises Price Target on FedEx (FDX), Remains Bullish and Encourages Investors to Buy
Tweet
Share
E-mailGet Alerts FDX Hot Sheet
Price: $267.10 +1.42%
Rating Summary:
24 Buy, 16 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
24 Buy, 16 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Join SI Premium – FREE
Jefferies remains bullish on shares of FedEx (NYSE: FDX) following the release its second quarter results and is raising its price target from $110 to $113.
The company posted strong second quarter results and management noted it experienced strong ground demand, mainly due to an increase in online shopping.
Along with posting solid results, FedEx also reaffirmed its full year guidance and offered inline third quarter guidance. Management's guidance for the third quarter calls for EPS of $1.25-$1.45 while its full year guidance calls for EPS of $6.25-$6.75. Jefferies states the reiterated guidance was looked at as almost a raise because many analysts and investors were forecasting a cut.
An analyst at Jefferies comments, "Investor concerns over the potential for a second guide-down on a lower GDP outlook seem to have been put to rest this quarter and we believe will continue to attract near-term incremental buyers as the company’s performance decouples from the economy. With this overhang removed, and trading at 12.0x forward earnings, we believe investors have a great entry point at these levels."
To go inline with the FedEx's strong growth trends, despite the current market conditions, Jefferies is raising its earnings estimates for FY12 from $6.26 to $6.38, for FY13 from $7.28 to $7.38, but is lowering its FY14 from $8.65 to $8.64.
For an analyst ratings summary and ratings history on FedEx click here. For more ratings news on FedEx click here.
Shares of FedEx closed at $83.47 yesterday.
The company posted strong second quarter results and management noted it experienced strong ground demand, mainly due to an increase in online shopping.
Along with posting solid results, FedEx also reaffirmed its full year guidance and offered inline third quarter guidance. Management's guidance for the third quarter calls for EPS of $1.25-$1.45 while its full year guidance calls for EPS of $6.25-$6.75. Jefferies states the reiterated guidance was looked at as almost a raise because many analysts and investors were forecasting a cut.
An analyst at Jefferies comments, "Investor concerns over the potential for a second guide-down on a lower GDP outlook seem to have been put to rest this quarter and we believe will continue to attract near-term incremental buyers as the company’s performance decouples from the economy. With this overhang removed, and trading at 12.0x forward earnings, we believe investors have a great entry point at these levels."
To go inline with the FedEx's strong growth trends, despite the current market conditions, Jefferies is raising its earnings estimates for FY12 from $6.26 to $6.38, for FY13 from $7.28 to $7.38, but is lowering its FY14 from $8.65 to $8.64.
For an analyst ratings summary and ratings history on FedEx click here. For more ratings news on FedEx click here.
Shares of FedEx closed at $83.47 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Super Micro Computer (SMCI) Falls 6%
- Acme United (ACU) Misses Q1 EPS by 20c
- CIMC Enric Holdings Ltd. (3899:HK) (CIMEF) PT Lowered to HK$8.70 at HSBC
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & Co, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
