UPDATE: Oppenheimer Initiates FedEx Corporation with Outperform Rating on Anticipated Revenue Growth
In a report published Tuesday, Oppenheimer initiated coverage on FedEx Corporation (NYSE: FDX) with an Outperform rating and $124.00 price target.
Oppenheimer noted, “We're initiating coverage of FedEx, a global leader in parcel/freight services, with an Outperform rating/$124 PT. We anticipate mid- to high-single-digit revenue growth over the coming years & operating margin expanding above 10% by CY15 from 7.4% in CY12. Resulting in ~20% adj'd EPS growth annually in FY14-FY16 following a lackluster FY13, drivers include improving US/global economic activity, secular e-commerce growth boosting B2C volumes & increased operational efficiency via FedEx's recently announced restructuring plan targeted at improving annual profitability by $1.65B by FY16. Investors appear to be discounting FedEx's potential to deliver revenue growth/restructuring profitability goals. We anticipate significant appreciation potential as FedEx demonstrates progress over the coming year(s).”
FedEx Corporation closed on Tuesday at $107.91.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.