FedEx (FDX): Raising PT To $280 Ahead of Earnings - Cowen

Cowen anlayst, Helane Becker, reiterated her Outperform rating on shares of FedEx (NYSE: FDX) and raised her price target to $280 from $240 on the belief that FedEx remains uniquely positioned to benefit from positive trends in e-commerce. The analyst points out that 85% of its revenues come from the b2b business but FedEx consistently outperforms the peer group delivering packages in a timely fashion.

The analyst stated "As we look ahead to calendar 2018 and fiscal 2019, we believe FedEx will continue to report positive year over year earnings growth. As a full tax-paying company, FedEx will benefit from tax reform and a lower book tax rate. In addition, given FedEx’s commitment to continued fleet renewal, the company will also benefit from immediately expensing CAPEX".

Although the company is reporting earnings on Tuesday, the analyst did not point to this as the catalyst for the PT increase, it appears to be driven by a longer term outlook.

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 $240.05 yesterday.

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