UBS Lowers FedEx's Price Target, Keeps Buy Rating

UBS analyst Thomas Wadewitz lowered FedEx Corp's FDX price target to $380 (implying an upside of 47.2%) from $397 and maintained a Buy rating on the shares.
Wadewitz says cost pressures expected to show up in Q1 results and related to ground hub ramp up and incentive comps are likely to be transitional, but headwinds from a tight labor market could persist.
Recently, FedEx and salesforce.com, inc. CRM announced a new multi-year partnership to deliver fast and easy shipping, end-to-end e-commerce, and supply chain management.
Price Action: FDX shares are trading higher by 0.24% at $259 during the premarket session on Friday.