Further Slide Thursday in FedEx, Setting up Favorable Risk/Reward Profile
FedEx (NYSE: FDX) is down another two percent in mid-day trading Thursday. Selling pressure remains on the stock after reporting disappointing earnings on Tuesday. However, on Thursday, analysts have come out in favor of this beaten down name.
Oppenheimer analyst Patrick Villani reiterated an Outperform rating and $124 price target. Deutsche BanK analyst Justin Yagerman reiterated a Buy rating and increased the price target to $127. That call represents a 30 percent upside potential from current levels.
Although the stock is still under heavy volume selling pressure Thursday, over the next couple of trading days, watch for selling pressure to subside. The stock should find support around $95 or at its 200 day moving average currently at $92.78.
Taking analyst opinions into account, favorable risk/reward is setting up for FedEx. That doesn’t mean buy, but it does mean it’s worth further research.
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