UPDATE: Goldman Sachs Reiterates Buy Rating, Lowers PT on FedEx

In a report published Wednesday, Goldman Sachs Group reiterated its Buy rating on FedEx Corporation

, but lowered its price target from $101.00 to $97.00. Goldman Sachs noted, “We reduce our FY2013-2015 EPS estimates by 2-11% on lower near-term growth expectations. Our estimates do not factor the company's plans to rationalize its costs. While we remain cautious on the near-term outlook (1H FY13E), our long-term thesis is unchanged. We believe that FDX is well positioned for an eventual upturn in freight volumes that we believe will happen from 2H FY13E, with an increasing prospect of re-stocking given low inventory levels. Our FY15 EPS estimate of $9.80 looks achievable given our undemanding assumptions for 2013-2015 revenue growth of 4% in Express, 6% in Freight, and 8% in Ground as well as consistent margin expansion average 1% per year.” FedEx Corporation closed on Tuesday at $86.55.