UPDATE: Deutsche Bank Raises PT to $123 on FedEx

Deutsche Bank increases its price target $2 to $123 on Buy-rated FedEx

as the company reported above-consensus EPS for the F3Q12. Deutsche Bank says, "FDX reported FQ3 adjusted EPS of $1.55, well above Consensus of $1.35 and DBe of $1.30. Adjusted EPS excludes a $0.10 benefit from a legal settlement. Upside to our estimate was driven by strength at Ground ($0.10), better Express margins ($0.08) and a tax tailwind ($0.08). Express margins were roughly 75bps better-than-expected due to tailwinds from weather, fuel, and lower maintenance expense. We continue to see compelling valuation especially after yesterday's sell-off and reiterate our Buy rating with new $123 PT." FDX closed at $92.50 a share on Thursday.