Barclays Maintains an 'Overweight' on FedEx (FDX); Qtr Unlikely to Inspire, but Outlook Might

Barclays maintains an 'Overweight' on FedEx (NYSE: FDX) price target of $115.00.

Barclays analyst says, "We do not expect fiscal 2Q results for FDX to inspire, but the company's outlook might given low inventories and stronger economic drivers like IP and retail sales. A rising fuel curve and continued international airfreight softness leave us without upside conviction for the quarter, but the combination of stronger end market demand and low inventories could make for a better forward outlook than quarter. At only 13x our FY12 estimate, however, we believe FDX offers a favorable risk-reward profile and time to wait for an improved international dynamic."

"Guidance could decline a bit further, but market likely expecting worse - We slightly lower our FY12 outlook to $6.25 and expect minor reductions to guidance. While FDX has performed reasonably well since last quarter's sell-off, we think most are still skeptical the company can earn $6 or more."

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 $82.14 yesterday.

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