Piper Jaffray Reiterates ‘Overweight’ Rating for FedEx (FDX)

FedEx

is scheduled to report its 4Q10 earnings on June 16th. Management is likely to announce conservative F2011 EPS guidance. Piper Jaffray expects that the company's international operations are likely to drive upside Express results. However, Express results will be offset by Freight’s operating losses. FedEx’s (

) growing Ground business has been overshadowed by the Express/Freight segments in recent quarters. The report stated that the Ground segment in the longer term continues to take market share on service vs. price, adding potential longer term earnings upside. The report also suggested that among its peers, FedEx has the most pure EPS upside potential/ leverage into an improving economy. The company has retained its ‘Overweight’ rating with a price target of $110 at Piper Jaffray.