UPDATE: Wunderlich Securities Initiates Coverage on FedEx Corporation with Buy Rating, $120 PT on Good Market Position

In a report published Friday, Wunderlich Securities analyst Chaz Jones initiated coverage on FedEx Corporation FDX with a Buy rating and $120.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of FedEx Corporation (FDX) with a Buy rating and a $120 target. FedEx is well positioned to benefit from longer-term secular trends that include increased global sourcing and selling, more sophisticated supply chain management, and e-commerce expansion. While slow global growth, yield pressure from overcapacity, and international services trade down remain near-term headwinds, we expect internal initiatives will drive substantial margin improvement and EPS leverage at Express and Freight over the next 2-3 years. FDX has a successful history of flexing its portfolio of networks to meet market conditions. We are confident that management's strategic plan will result in reaching its goals of 10%+ enterprise margins while increasing cash flow, ROIC, and dividends.” FedEx Corporation closed on Thursday at $104.40.