UPDATE: JP Morgan Reiterates Overweight on FedEx; Story Remains Intact Post Q3 Downside

JP Morgan maintained FedEx FDX with an Overweight rating. JP Morgan analyst Thomas R. Wadewitz wrote, "FDX's 3QF13 EPS report was weaker than our Street-low estimate due to a combination of the headwind from trade down in International Express and weaker-than-anticipated margin performance in Ground. The International trade down headwind is an incremental negative, but we believe the broader story of upside from its operating improvement / cost-reduction program and cyclical leverage has not changed. As a result, we favor buying FDX stock on the pullback in response to the soft 3Q report." FedEx closed at $106.46 on Tuesday.