Citi Previews F4Q Results On FDX

Citi is maintaining its Buy rating and $110 price target on FedEx Corp.

as the company prepares to release its F4Q results next Wednesday. Says Citi, in the report, “With FedEx set to report F4Q11 EPS next Wednesday, focus will be on results relative to expectations and the company's established $1.66 - $1.83 EPS range (consensus is $1.73). Nevertheless, we believe the main event for investors will be F2012 EPS guidance. While consensus remains fairly constructive at $6.43 (assumes 31% YOY growth), it appears that buyside expectations have been revised down toward the low-$6 per share range. Over the last two weeks FedEx shares are off 7.6%, settling into a mid-$80 range, which we believe implies a $6.00-$6.25 range for F2012 using a 14x target multiple. We remain a bit more optimistic, but are reigning in our estimates slightly for F4Q and F2012 and expect a target range of $6.00-$6.40 for F2012.” FDX closed at $86.49 yesterday.