Morgan Stanley Forecasts Strong Price Appreciation for FedEx (NYSE:FDX) Stock

FedEx (NYSE:FDX) had its price objective raised by investment analysts at Morgan Stanley from $220.00 to $230.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has an “underweight” rating on the shipping service provider’s stock. Morgan Stanley’s price target points to a potential downside of 35.83% from the company’s current price.

A number of other brokerages have also commented on FDX. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $457.00 price target on shares of FedEx in a research note on Friday, March 6th. Zacks Research lowered FedEx from a “strong-buy” rating to a “hold” rating in a research report on Wednesday. UBS Group boosted their target price on FedEx from $314.00 to $412.00 and gave the stock a “buy” rating in a research report on Wednesday, February 4th. Stifel Nicolaus set a $412.00 price objective on FedEx in a research report on Friday, February 13th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of FedEx in a research note on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, FedEx presently has an average rating of “Moderate Buy” and an average price target of $393.85.

FedEx Stock Performance

NYSE:FDX opened at $358.44 on Friday. FedEx has a twelve month low of $194.29 and a twelve month high of $392.86. The stock has a market cap of $84.28 billion, a P/E ratio of 19.08, a PEG ratio of 1.70 and a beta of 1.29. The company has a quick ratio of 1.23, a current ratio of 1.27 and a debt-to-equity ratio of 0.72. The business’s 50-day moving average price is $351.21 and its two-hundred day moving average price is $291.29.

FedEx (NYSE:FDX) last announced its earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.12 by $1.13. The company had revenue of $24 billion during the quarter, compared to analyst estimates of $23.44 billion. FedEx had a net margin of 4.88% and a return on equity of 17.03%. The firm’s quarterly revenue was up 8.3% compared to the same quarter last year. During the same period in the previous year, the business earned $4.51 earnings per share. As a group, equities analysts predict that FedEx will post 19.14 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank bought a new position in shares of FedEx during the 4th quarter worth approximately $859,085,000. Vanguard Group Inc. increased its position in shares of FedEx by 13.2% in the 3rd quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider’s stock valued at $5,527,870,000 after acquiring an additional 2,741,723 shares during the period. Boston Partners purchased a new position in shares of FedEx in the third quarter worth about $468,195,000. Dodge & Cox raised its position in FedEx by 12.0% during the 3rd quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider’s stock worth $3,826,055,000 after buying an additional 1,742,666 shares during the last quarter. Finally, AQR Capital Management LLC lifted its holdings in shares of FedEx by 169.2% in the 3rd quarter. AQR Capital Management LLC now owns 2,733,905 shares of the shipping service provider’s stock valued at $638,203,000 after buying an additional 1,718,278 shares during the period. 84.47% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Q3 beat and guidance raise — FedEx posted a double beat (EPS and revenue) and lifted full‑year profit guidance, which is the primary driver behind the stock rally. Article Link
• Positive Sentiment: Analyst re‑ratings and price‑target lifts — Multiple firms (UBS, Wells Fargo, BofA, Susquehanna, Stephens, TD Cowen, Truist, Stifel, BMO, etc.) raised targets or upgraded ratings after the results, supporting further upside sentiment. Article Link
• Neutral Sentiment: Management says demand is holding — FedEx flagged that early‑March volumes matched expectations and that its fuel surcharge is moderating higher fuel costs, but management assumes no additional geopolitical disruptions. That reduces immediate downside but leaves exposure to future shocks. Article Link
• Neutral Sentiment: Market context is mixed — broader markets are pressured by oil/geo risks and macro data, so FedEx’s outperformance is occurring in a risk‑off environment that could limit follow‑through. Article Link
• Negative Sentiment: Cost and segment risks persist — fuel costs are materially higher (a key margin headwind) and the Freight business remains weak; both could pressure results if trends worsen. Article Link
• Negative Sentiment: Some caution in the market and mixed guidance reaction — a few headlines note the company gave a relatively cautious near‑term forecast that caused intraday profit‑taking, and one major house (Morgan Stanley) still expresses an underweight stance with a much lower target. Article Link
• Negative Sentiment: Operational/PR risk — the NTSB is probing a close runway call involving a FedEx jet, a reputational/operational overhang to monitor. Article Link

About FedEx

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.