FedEx "neutral," target price reduced

09.03.09 - Robert W. Baird

NEW YORK, March 9 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on FedEx Corporation (FDX), while reducing their estimates for the company. The target price has been reduced from $65 to $41.

In a research note published this morning, the analysts mention that freight trends, especially in the parcel segment, have deteriorated in recent months. FedEx is likely to incur significant expenses on pension related matters in FY10, the analysts add. The benefits derived from the decline in fuel prices are likely to cease in the near future and pressurize the company?s earnings, Robert W Baird says. The EPS estimates for FY09 and FY10 have been reduced from $4.26 to $2.93 and from $3.96 to $2.50, respectively.