FedEx "buy," target price reduced

12.05.08 - Stifel Nicolaus

NEW YORK, May 12 (newratings.com) - Analysts at Stifel Nicolaus & Company maintain their "buy" rating on FedEx Corp (FDX), while reducing their estimates for the company. The 12-month target price has been reduced from $105 to $104.

In a research note published this morning, the analysts mention that the company has reduced its F4Q08 EPS guidance from $1.60-$1.80 to $1.45-$1.50 due to a continued rise in its fuel costs. FedEx has announced that weak demand in the US domestic express business and LTL division is restricting its performance. The EPS estimates for FY08, FY09 and FY10 have been reduced from $6.11 to $5.84, from $6.57 to $6.08 and from $7.84 to $7.55, respectively.