UPDATE: Citigroup Maintains Buy, Cuts PT on FedEx Corporation On Domestic Express Restructuring Step

Citigroup reiterates its Buy rating on FedEx Corporation FDX and lowers its price target from $110 to $100. Citigroup comments, "In a move we highlighted was likely, FedEx is adjusting its Express capacity to match struggling airfreight volumes as it opted to retire 18 A310 (and 17 related engines) and 6 MD10 (and 17 engines), in conjunction with its planned retirement of 5 727s in F4Q12 and 21 727s in F2013. …Additional Express restructuring is expected at its October investor meeting, focusing on infrastructure and headcount, to a lesser extent. That said, with FedEx shares trading at 11.4x, a five turn discount to its long-term average, we believe that investors seem to be pricing in fairly pessimistic expectations." FDX closed at $85.20 on Monday.