UPDATE: Morgan Stanley Downgrades FedEx on Stronger Than Anticipated Headwinds

In a report published on Thursday, Morgan Stanley analyst William J. Greene downgraded

from Overweight to Equal-weight and lowering the price target on the company from $112 to $105. In the report, Morgan Stanley stated, "Despite a strong 4Q, FY14 guidance was below our seasonality-based estimate, suggesting that structural and cyclical headwinds are greater than we appreciated, pushing out the timing of when FDX realizes net savings from profit improvement efforts to FY15 and beyond. Also, we expect higher capital spending in FY14 will depress FCF and ROIC and constrain multiple expansion." FedEx closed on Wednesday at $100.54.