Deutsche Raises Price Target on FedEx (FDX), Sees Q2 Upside, Great Long-Term Investment
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Price: $334.64 -1.39%
Rating Summary:
28 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
28 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank is maintaining its Buy rating on shares of FedEx (NYSE: FDX) while raising its price target from $111 to $112.
The firm is forecasting upside to the Street's current earnings estimate for the second quarter, which is $1.51 per share. Deutsche is raising its Q2 EPS estimate from $1.50 to $1.65 on better than previously expected margins. The new margin forecast is due to better Express aircraft capacity utilization, solid Ground volume growth, and core pricing improvement.
Deutsche believes FedEx can improve its Ground operating margins with the growth of SmartPost as it now accounts for roughly 28 percent of total ground packages. The company's Express field should also benefit as a result of capacity reductions in Asian during the second quarter.
An analyst at Deutsche comments, "We see compelling valuation and solid growth prospects long-term, however, near-term stock movement will likely be driven by macro sentiment."
For fiscal 2012, the firm is also increasing its EPS estimate from $6.07 to $6.26. Deutsche is reaffirming its fiscal 2013 estimate of $7.62.
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 $78.93 yesterday.
The firm is forecasting upside to the Street's current earnings estimate for the second quarter, which is $1.51 per share. Deutsche is raising its Q2 EPS estimate from $1.50 to $1.65 on better than previously expected margins. The new margin forecast is due to better Express aircraft capacity utilization, solid Ground volume growth, and core pricing improvement.
Deutsche believes FedEx can improve its Ground operating margins with the growth of SmartPost as it now accounts for roughly 28 percent of total ground packages. The company's Express field should also benefit as a result of capacity reductions in Asian during the second quarter.
An analyst at Deutsche comments, "We see compelling valuation and solid growth prospects long-term, however, near-term stock movement will likely be driven by macro sentiment."
For fiscal 2012, the firm is also increasing its EPS estimate from $6.07 to $6.26. Deutsche is reaffirming its fiscal 2013 estimate of $7.62.
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 $78.93 yesterday.
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