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FedEx (FDX) was recently upgraded to Buy from Hold by Jefferies. Market Domination hosts Julie Hyman and Josh Lipton break down the reasons for the upgrade.
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Jeffries shrugging off some of the macro outlook for FedEx and drilling in on the cost transformations taking place lifting that name uh to a buy as well saying uh with the market overly distracted by the broader macro. They say we think investors are ignoring the idiosyncratic cost transformation going on at FedEx under the surface.
Yes, Drive is the name of that cost program that FedEx has been working on for the past couple of years here as it also plans to separate its business of freight from the express. Um and essentially the analyst here says that there is this maybe antiquated idea of FedEx as being very indexed to the economy and not only that leverage to the economy but because of this cost savings it makes them the analyst argues less vulnerable um in in any kind of environment really. So it was it's an interesting um an interesting view that the market is not sort of the market's thinking hasn't sort of caught up with where FedEx is right now.
Yeah, and FedEx did recently report results which we talked about and they lowered profit guidance and investors weren't happy about that one bit. But Jeffries steps in and says, listen, risk rewards compelling, they put the target at 275. Looks like the average target is around 287.
Mhm.