UPDATE: Oppenheimer Initiates Coverage on FedEx Corporation with Outperform Rating, $124 PT on Anticipated Revenue Growth

In a report published Wednesday, Oppenheimer initiated coverage on FedEx Corporation

with an Outperform rating and $124.00 price target. Oppenheimer noted, “We're initiating coverage of FedEx, a global leader in parcel/freight services, with an Outperform rating/$124 PT. We anticipate mid- to high-single-digit revenue growth over the coming years & operating margin expanding above 10% by CY15 from 7.4% in CY12. Resulting in ~20% adj'd EPS growth annually in FY14-FY16 following a lackluster FY13, drivers include improving US/global economic activity, secular e-commerce growth boosting B2C volumes & increased operational efficiency via FedEx's recently announced restructuring plan targeted at improving annual profitability by $1.65B by FY16. Investors appear to be discounting FedEx's potential to deliver revenue growth/restructuring profitability goals. We anticipate significant appreciation potential as FedEx demonstrates progress over the coming year(s).” FedEx Corporation closed on Tuesday at $107.91.