What The FedEx Bulls Are Saying

FedEx Corporation FDX provides a wide range of e-commerce, transportation and business services.

Shares of Fedex closed at $182.32 at the end of Wednesday’s market session, and rose to $184.92 to close on Thursday after a handful of analysts revealed bullish thoughts on the company.

“Momentum Builds In the Stock”

Allison Landry, of Credit Suisse, has yet again rated FedEx Corporation at Market Outperform, but raised the transportation giant’s target price from $198 to $206.

She specified that she will leave her FY15 EPS intact, but will raise FY16 EPS to $10.89, up $0.09 from previous estimates alongside an increase of $0.06 increase in FY17 EPS to $12.54.

Higher Future Dividends?

Landry added, “We think the stock(FDX) continues to work as the company right sizes its int’l express fleet; while at the same time stays the course with respect to deploying capital toward the higher margin/ROIC Ground Biz. This will pay dividends in the future.”

“Addition By Fleet Subtraction”

Christian Wetherbee, analyst at Citigroup, rated FedEx with a Buy One rating alongside a price target of $205. Wetherbee, like Landry, also detects FY16 is shaping up to a “transformative year, as is makes solid strides in aircraft capacity reduction.” Christian also considers a seasonal trade at the end of C15 will be similar to previous “back half of C13 and C14, when shares were up by 45 percent and 14 percent.”

The analyst went in depth in FedEx’s aircraft retirements; estimating that the retirements will eventually yield nearly a 30 plane reduction in the company’s fleet between FY2015 and FY2016.

He notes, “We believe a net 30 plane reduction in fleet capacity should generate ~$400 million of savings.”

RBC Capital

RBC Capital also weighed in on FedEx, raising their price target by $15, from $180 to $195. Analysts from RBC maintained their rating for the company at Sector Perform.