Piper Jaffray Reiterates Overweight and PT of $116 on FedEx

Piper Jaffray reiterated its Overweight rating on FedEx

. At the same time, Piper Jaffray left its price target on the company's stock unchanged at $116 ahead of the company's quarterly earnings report, which is due on Wednesday, June 22. In a research report published today, Piper Jaffray states, "We believe F4Q11 upside potential is limited by Express fuel and the final quarter of more difficult compensation expense. However, FDX has margin improvement tailwind at its back beginning in F1Q12 with Express lapping tougher compensation and to a lesser extent maintenance expense, sees greater benefit from air fleet revamp, and Freight (

) returns to profitability post network merger. Management's introduction of F2012 EPS guidance is the focus and our sense is – per historical guidance behavior and recent stock correction – an in line to modestly below Consensus guide is more likely." On Tuesday, FedEx added 1.76% to its value to close the day at $87.43.