FedEx has placed its freight business under strategic review, the company said when it reported fiscal fourth-quarter results Tuesday FedEx Corp.’s ongoing cost-cutting efforts are delivering results, say analysts, who also welcome the package deliverer’s strategic review of its freight business. In its fiscal fourth-quarter results Tuesday, FedEx (FDX) said it expected improved demand for the coming fiscal year, sending its stock soaring 15% in premarket trading. It also said that it is conducting an assessment of FedEx Freight’s role in the company’s “value-creation plans” and that it plans to complete the review by the end of the calendar year. The company’s capital spending was $5.2 billion in fiscal 2024, down 16% from $6.2 billion in fiscal 2023. Related: FedEx rallies after big cost cuts, but one analyst wonders if the easy reductions are in the past TD Cowen raised its FedEx price target to $335 from $320 Wednesday, citing

FedEx’s (FDX) performance slightly exceeded consensus expectations in fiscal Q4, driven by less-than-truckload operations, Morgan Stanley said in an earnings review Wednesday. Where FedEx Ground and Express missed consensus, Freight services surpassed both Morgan Stanley estimates and consensus expectations, the note said. FedEx’s 2025 guidance might be slightly better, but the brokerage said, “As such, we do not believe that we received much new information today that will cause the [Wall Street] to materially gap up [fiscal 2025] earnings expectation.” The proposed spinoff of LTL operations isn’t expected to fundamentally alter the risk-reward dynamics, Morgan Stanley said. “We believe the big stock reaction today is likely a result of the announcement of the strategic review of the LTL business driving short-covering of the stock.” Morgan Stanley raised its price target for FedEx to $215 from $210 and reiterated equalweight rating.

Transportation company FedEx Corporation(NYSE:FDX) was sized up by analysts after reporting fourth-quarter results that beat estimates. The FedEx Analysts: Goldman Sachs analystJordan Alliger had a Buy rating and raised the price target from $316 to $333. Bank of America analyst Ken Hoexter had a Buy rating and raised the price target from $340 to $347. Morgan Stanley analyst Ravi Shanker had an Equal-weight rating and raised the price target from $210 to $215. Oppenheimer analyst Scott Schneeberger had a Perform rating and no price target. Stifel analyst J. Bruce Chan had a Buy rating and raised the price target from $303 to $327. Stephens analyst Daniel Imbro had an Overweight rating and $325 price target. Raymond James analyst Patrick Tyler Brownhad an Outperform rating and raised the price target from $300 to $335. Related Link: FedEx Stock Is Delivering Gains Wednesday: What’s Going On? Goldman Sachs on FedEx: The company

FedEx stock is shooting higher on Wednesday after the shipping and logistics company’s latest quarterly results. Investors are right to be happy about its progress, but what is going on there doesn’t reflect much about the broader economy, despite the company’s bellwether status. Shares of FedEx were up 15% in afternoon trading, bolstered not only by the company’s beat-and-raise fiscal fourth quarter, but also by its pledge to conduct a strategic review that could lead to a sale or spinoff of its less-than-truckload freight business. The stock’s move is a welcome change from the rest of the year, as FedEx has struggled near the break-even line. Given that underperformance, it isn’t too late for investors to buy into the shares even after Wednesday’s pop. They trade for around 12 times forward earnings, just below their five-year average of 12.5 times. Analysts’ profit forecasts are likely to climb as the Street

FedEx has placed its freight business under strategic review, the company said when it reported fiscal fourth-quarter results Tuesday FedEx Corp.’s ongoing cost-cutting efforts are delivering results, say analysts, who also welcome the package deliverer’s strategic review of its freight business. In its fiscal fourth-quarter results Tuesday, FedEx (FDX) said it expected improved demand for the coming fiscal year, sending its stock soaring 15.5% on Wednesday. The company also said that it is conducting an assessment of FedEx Freight’s role in the company’s “value-creation plans” and that it plans to complete the review by the end of the calendar year. The company’s capital spending was $5.2 billion in fiscal 2024, down 16% from $6.2 billion in fiscal 2023. Related: FedEx rallies after big cost cuts, but one analyst wonders if the easy reductions are in the past TD Cowen raised its FedEx price target to $335 from $320 on Wednesday,