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UPDATE: BofA Securities Downgrades FedEx (FDX) to Neutral

September 16, 2022 6:16 AM EDT
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Price: $173.21 --0%

Rating Summary:
    16 Buy, 22 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 3 | Down: 8 | New: 3
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(Updated - September 16, 2022 7:04 AM EDT)

BofA Securities analyst Ken Hoexter downgraded FedEx (NYSE: FDX) from Buy to Neutral with a price target of $186.00 (from $275.00).

The analyst comments "After market, FedEx announced preliminary F1Q23 adj EPS of $3.44, down 21% year-over-year, well below our $5.30 and Street’s $5.10 target. Revenues ($23 billion) were $200 mil below our tgt and operating income ($1.2 billion) was $600 mil below our tgt. It noted Express revenues for the quarter ($11.1 billion, $300 mil below our target) were $500 million below its forecasts on macro weakness in Asia and service issues in Europe while Ground revenues ($8.2 billion, in-line with our target) were $300 mil below its forecasts. Its miss against our EPS target is mainly on its elevated costs as operating income for both Express ($188 mil vs our $763 mil tgt) and Ground ($694 mil vs our $736 mil tgt) segments fell short of our estimates. The company attributed its miss on higher fixed costs as volume decelerated (both Int’l and in U.S), noting macroeconomic trends worsened later in quarter, and expenses lagged worsening demand."

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 $204.87 yesterday.


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