Credit Suisse Bullish On FedEx Corporation

Analysts at Credit Suisse maintained the Neutral rating on FedEx Corporation FDX and raised the price target to $162 from $156 Tuesday.

Allison Landry Outlined reasons for the price target boost:

• Potential EPS beat in fiscal first quarter. Landry stated that reduced fuel costs, and a pick-up in the international airfreight market provide potential to beat Street estimates in the company’s first quarter.
• Fuel tailwinds likely to boost earnings. Landry declared , “According to FDX's fuel surcharge schedule, the avg. Express US domestic/outbound fuel surcharge rose by ~100 bps y/y - which should create a favorable yield comp...as such, Express should benefit on the cost side.”
• International airfreight growth. Analysts found, the international airfreight environment in Asia/Pacific continued to trend positively in June and July, with total international volumes growing 6.4 percent on average in the first two months of FDX's fiscal first quarter 2015.

Shares of FedEx recently traded at $153.84 down 0.1 percent