FedEx Jumps as Analysts Raise Price Targets on Rosy Outlook By

© Reuters.

Dhirendra Tripathi – FedEx (NYSE:) shares traded 7% higher Friday as its better-than-expected February quarter performance had analysts raising their price targets for the logistics giant.

On Thursday, the company reported earnings of $939 million, or $3.47 per share, in the February quarter, while surveyed analysts were expecting the company to report EPS of $3.23, StreetInsider said. This compares to last year’s net income of $371 million, or $1.41 per share.

Goldman Sachs (NYSE:) analyst Jordan Alliger hiked the price target to $365 from the prior $356, according to StreetInsider. BofA (NYSE:) analyst Ken Hoexter also raised the target to $351 from $346 earlier on expectations of continued strength.

The shares are trading some 8% off their 52-week high of $305.59, the peak being almost three times their low of $103.41 for the period.

Goldman’s new price is 29% higher than the prevailing prices while BofA’s is 24% higher.

FedEx has set aside a capex of $5.7 billion for 2021 financial year, higher than previously forecast. The higher capex allocation assumes continued recovery in U.S. industrial production and global trade, no additional Covid-19-related business restrictions and current fuel price expectations.

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