UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on FedEx Corporation Following Solid FQ1 EPS Report

In a report published Thursday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on FedEx Corporation FDX, and raised the price target from $123.00 to $131.00. In the report, Deutsche Bank noted, “Yesterday, FDX reported FQ1 EPS of $1.53, well above our estimate of $1.35 and Consensus of $1.50. Upside was driven by cost reductions at Express and operating leverage to better-than-expected Express volumes (Domestic ADV were up 1.5% y/y [vs. DBe of flat y/y] and IP ADV increased 3.6% y/y [above our estimate of up 1.0% y/y]). Despite worse-than-expected pricing at both Domestic Express and International Export, FDX's cost initiatives drove a nearly 130bps margin beat at Express despite fuel headwinds. We are buyers on yesterday's strength (up 5% vs. a 1.2% increase in the S&P 500) as FDX is poised to benefit from its self-help initiatives and an improving economy. BUY.” FedEx Corporation closed on Wednesday at $116.25.