Wells Fargo Downgrades FedEx (FDX) to Market Perform After Warning
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Rating Summary:
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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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Wells Fargo downgraded FedEx (NYSE: FDX) from Outperform to Market Perform and lowered their valuation range from $100.00 to $104.00 to $89.00 to $93.00, following last night's first quarter warning.
The firm lowered FQ1 2013 EPS estimate to $1.40 from $1.57 (Street at $1.56 pre-update) on updated guidance of $1.37-1.43 (prior $1.45-1.60). FY2013 EPS est is reduced to $6.86 from $7.24 and FY2014 EPS est is reduced to $7.92 from $8.13.
"We are downgrading shares of FDX to Market Perform from Outperform. Our Outperform rating had been premised on our view that ongoing strength at FedEx Ground and methodical improvements at FedEx Freight would support the earnings outlook despite weakness at FedEx Express. Moreover, we thought a potential cyclical rebound at FedEx Express could create upside potential. Following FDX's 9/4/12 reduction in FQ1 2013 guidance we no longer hold this view.
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 $87.54 yesterday.
The firm lowered FQ1 2013 EPS estimate to $1.40 from $1.57 (Street at $1.56 pre-update) on updated guidance of $1.37-1.43 (prior $1.45-1.60). FY2013 EPS est is reduced to $6.86 from $7.24 and FY2014 EPS est is reduced to $7.92 from $8.13.
"We are downgrading shares of FDX to Market Perform from Outperform. Our Outperform rating had been premised on our view that ongoing strength at FedEx Ground and methodical improvements at FedEx Freight would support the earnings outlook despite weakness at FedEx Express. Moreover, we thought a potential cyclical rebound at FedEx Express could create upside potential. Following FDX's 9/4/12 reduction in FQ1 2013 guidance we no longer hold this view.
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 $87.54 yesterday.
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