FedEx "neutral," target price reduced

19.06.08 - Robert W. Baird

NEW YORK, June 19 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on FedEx Corp (FDX), while reducing their estimates for the company. The target price has been reduced from $98 to $90.

In a research note published yesterday, the analysts mention that the company has reported weak 4Q results, with pro forma EPS in-line with the guidance. FedEx has issued its EPS guidance for FY09 at $4.75-$5.25, significantly short of the consensus. Volume declines in the Domestic Express business might accelerate, if the fuel price inflation continues, Robert W Baird adds. The EPS estimates for FY09 and FY10 have been reduced from $5.60 to $4.90 and from $6.50 to $6.00, respectively.