FedEx (FDX) PT Lowered to $249 at Bernstein SocGen Group

Bernstein SocGen Group analyst David Vernon lowered the price target on FedEx (NYSE: FDX) to $249.00 (from $282.00) while maintaining a Market Perform rating.

The analyst commented: "Bridging the initiative gap in 2026 looks challenging, and execution risk is building; A lack of initiatives to bridge DRIVE to Network 2.0 is going to put consensus out of reach for FY26. Combine that with rising execution risk on a very complex network integration and the risk / reward here looks less compelling. Maintain Market-Perform, lower PT to $249.

The low end of FY25 (ends May) looks achievable. We expect F4Q25 to come in 2% below consensus EPS of $5.98, which would put the full year at $18.04 and towards the lower end of the FY guide ($18.00-18.60). We are taking our estimate for the quarter in, as while fundamentals have held up better than expected, it's hard to think volatility in trade flows isn’t having any impact on the business.

Maintain Market-Perform, lower PT to $249. The initiative gap is too big to cross, and we see risk in timing / execution on Network 2.0 that makes us reluctant to buy into the company’s abiltiy to meet relatively ambitious sell-side forecasts for earnings growth."

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