Morgan Stanley Reports More Confirmation Of FY12 Potential On FedEx

In a report published by Morgan Stanley, it gives more confirmation of FY12 potential on FedEx FDX.

Morgan Stanley said that at 13.8X consensus F2012 EPS, FDX is not expensive in historical terms, and fundamentals appear favorable. “Consensus clearly underestimates incremental margins at both Express and Freight for FY12. But as a levered play on global trade, FDX is particularly vulnerable to any global shock. With June FY12 guidance as the next clear catalyst and situations in the EU, Middle East, and Japan unsettled, the probability of negative headlines is just as likely as any positive catalyst. Until these issues are resolved (most notably radiation concerns in Japan), there's likely to be an overhang on the stock.”

FedEx closed yesterday at $87.89.