Standpoint Research Upgrades FedEx (FDX) to Buy, Sees 44% Upside
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Price: $318.57 +0.85%
Rating Summary:
28 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 33 | Down: 45 | New: 4
Rating Summary:
28 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 33 | Down: 45 | New: 4
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Standpoint Research upgraded FedEx (NYSE: FDX) from Hold to Buy with a price target of $130.00, suggesting 44% upside.
Analyst Ronnie Moas comments, "We closed out our recommendation on FDX with a 20% gain, +1000 bps versus the S&P on October 21, 2011. The holding period was only one month on that September 22, 2011 recommendation. The shares have underperformed the S&P-500 since our downgrade a year ago. The cost cutting measures announced yesterday were very significant and a game changer. Even if the $1,700,000,000 in cuts are not completely made, and even if there is a slight revenue decline coinciding with these cuts, these moves all but guarantee that FDX will deliver EPS topping $10.00 in 2015-2016. We will reinstate this name to our list of open recommendations with a price target of $130. This would represent a new all-time high; topping the mark reached in 2006-2007 ($120). FDX traded at $120 with a 20X multiple in 2006-2007 on EPS of just $6.00, so our target here of 13X $10.00 is not aggressive."
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 $89.99 yesterday.
Analyst Ronnie Moas comments, "We closed out our recommendation on FDX with a 20% gain, +1000 bps versus the S&P on October 21, 2011. The holding period was only one month on that September 22, 2011 recommendation. The shares have underperformed the S&P-500 since our downgrade a year ago. The cost cutting measures announced yesterday were very significant and a game changer. Even if the $1,700,000,000 in cuts are not completely made, and even if there is a slight revenue decline coinciding with these cuts, these moves all but guarantee that FDX will deliver EPS topping $10.00 in 2015-2016. We will reinstate this name to our list of open recommendations with a price target of $130. This would represent a new all-time high; topping the mark reached in 2006-2007 ($120). FDX traded at $120 with a 20X multiple in 2006-2007 on EPS of just $6.00, so our target here of 13X $10.00 is not aggressive."
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 $89.99 yesterday.
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