Dahlman Rose Raises Price Target on FedEx (FDX) To $122, Strong Long-Term Growth
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Price: $270.15 +1.18%
Rating Summary:
24 Buy, 16 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 3 | New: 2
Rating Summary:
24 Buy, 16 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 3 | New: 2
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Dahlman Rose is maintaining their Buy rating on shares of FedEx (NYSE: FDX) following their 4Q results that came in inline with what they were anticipating.
In light of continued strong yield improvement, abating cost headwinds, and the solid results, the firm is raising their price target to $122 from $97 to go inline with their new 2011 and 2012 EPS estimates of $4.90 and $6.65, up from $4.75 and $6.20. They are also increasing their CY11 estimate to $5.80 from $5.36 and is introducing their CY12 at $7.20.
The company reported their 3Q11 results with an EPS of $0.73 which excluded $43 million in charges related to the merging of the company's Freight and National LTL divisions, EPS operations came in around $0.82. FDX states that $0.12 of EPS was lost due to server weather during the quarter. Revenues were up 11% y/y to $9.66 billion and were largely driven by yield improvements.
The firm believes that FDX is a very good pick for the long term as their international exposure should allow them to continue to benefit from a robust global economic environment which is fueled by manufacturing in Asia and Latin America and growth in other emerging markets.
Dahlman Rose commented that, "FedEx resumed service to Tokyo's Narita International Airport and began restoring pickup and delivery in eastern Japan. Inbound shipments to eastern Japan, Guam, Okinawa and Saipan were being accepted, excluding perishables, inbound FedEx International Express Freight, FedEx Airport-to-Airport and FedEx International Premium services. The company said pickup and delivery service in eastern Japan would resume except for Koriyama-Shi, Sendai-Shi and Miyagino-Ku."
For more ratings news on FedEx click here and for the rating history of FedEx click here.
Shares of FedEx closed at $87.89 yesterday.
In light of continued strong yield improvement, abating cost headwinds, and the solid results, the firm is raising their price target to $122 from $97 to go inline with their new 2011 and 2012 EPS estimates of $4.90 and $6.65, up from $4.75 and $6.20. They are also increasing their CY11 estimate to $5.80 from $5.36 and is introducing their CY12 at $7.20.
The company reported their 3Q11 results with an EPS of $0.73 which excluded $43 million in charges related to the merging of the company's Freight and National LTL divisions, EPS operations came in around $0.82. FDX states that $0.12 of EPS was lost due to server weather during the quarter. Revenues were up 11% y/y to $9.66 billion and were largely driven by yield improvements.
The firm believes that FDX is a very good pick for the long term as their international exposure should allow them to continue to benefit from a robust global economic environment which is fueled by manufacturing in Asia and Latin America and growth in other emerging markets.
Dahlman Rose commented that, "FedEx resumed service to Tokyo's Narita International Airport and began restoring pickup and delivery in eastern Japan. Inbound shipments to eastern Japan, Guam, Okinawa and Saipan were being accepted, excluding perishables, inbound FedEx International Express Freight, FedEx Airport-to-Airport and FedEx International Premium services. The company said pickup and delivery service in eastern Japan would resume except for Koriyama-Shi, Sendai-Shi and Miyagino-Ku."
For more ratings news on FedEx click here and for the rating history of FedEx click here.
Shares of FedEx closed at $87.89 yesterday.
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