FedEx downgraded to "market perform"

12.05.08 - Morgan Keegan

NEW YORK, May 12 (newratings.com) - Analysts at Morgan Keegan downgrade FedEx Corp (FDX) to "market perform," while reducing their estimates for the company.

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, citing rising fuel prices and the weak economy. The uncertainty surrounding the economy and the fuel prices is expected to restrict going forward FedEx?s earnings expansion potential, the analysts say. The EPS estimates for FY08 and FY09 have been reduced from $6.11 to $5.88 and from $6.23 to $5.75, respectively.