UPDATE: Raymond James Downgrades FedEx (FDX) to Market Perform

September 22, 2021 5:46 AM EDT
Get Alerts FDX Hot Sheet
Price: $240.54 +2.18%

Rating Summary:
    25 Buy, 15 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 8 | New: 36
Trade Now! 
Join SI Premium – FREE
(Updated - September 22, 2021 7:18 AM EDT)

Raymond James analyst Patrick Tyler Brown downgraded FedEx (NYSE: FDX) from Outperform to Market Perform.

The analyst commented, "We are downgrading shares of FedEx from Outperform to Market Perform after a disappointing quarter (despite solid top line trends), lowered guidance (only 90-days post establishing it), continued heady capex investments (despite a cloudier outlook), back-end loading of the guidance (a risky elixir), and more global uncertainty. While we remain heartened that the parcel pricing and volume backdrop remains constructive and FedEx’s LTL operation continues to hit on all cylinders, we are concerned that numbers remain at risk as the guidance assumes a continued growth in Industrial Production and trade, labor inefficiencies abate, and less controllable “bad guys” from last year don’t recur (think weather). While FDX trades at only 13x our revised FY2022 EPS, we’d stress they are also trading 23x all-important FCF, a premium to its facing peer and more inline with the broader complex. Further, outside reaping from their sizable investments over the past decade (outsized NOPAT growth) or throttling capex, we see limited multiple expansion opportunities."

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 $252.07 yesterday.

You May Also Be Interested In

Related Categories

Analyst Comments, Downgrades

Related Entities

Raymond James, Industrial Production