Deutsche Bank Tweaks FedEx's Estimates

In a research report published today, Deutsche Bank slightly lowered estimates for FedEx Corporation

. Deutsche Bank commented in the report, “While we have lowered our FY2012E EPS estimate to $6.27, from $6.30, our FY2013E EPS estimate is unchanged. We are now estimating FQ3 EPS of $1.30/share (versus $1.32 previously) and Consensus of $1.35. We reiterate our $121 price target which is derived by applying a 16x P/E multiple on our CY2013E EPS estimate of $8.15 discounted by 8% to reflect limited visibility given macro uncertainty, geopolitical risk (oil & European debt uncertainty), and ongoing deleveraging. Risks include operating leverage, deceleration in emerging market growth (particularly in China), potential post office budget cuts, and the broader economy.” Deutsche Bank maintains its Buy rating on FedEx, which closed yesterday at $87.76.