TD Cowen Lifts PT on FedEx (FDX) Stock

FedEx Corporation (NYSE:FDX) is one of the Best Undervalued Stocks to Invest in According to Reddit. On September 19, TD Cowen lifted the price target on the company’s stock to $271 from $269, while keeping a “Buy” rating, as reported by The Fly. As per the firm, the company beat expectations in Q1 2026 despite trade policy headwinds and the Freight miss. Notably, FedEx Corporation (NYSE:FDX)’s Q1 2026 earnings growth underscores the success of its strategic initiatives, as it flexes its network and reduces its cost-to-serve, while further enhancing the value proposition and customer experience.

FedEx Corporation (NYSE:FDX)’s consolidated operating results witnessed improvement, demonstrating strength in US domestic package revenue and continued structural cost reduction.  Furthermore, the planned spin-off of FedEx Freight into the new publicly traded company has been advancing and is expected to be executed by June 2026. Effective January 5, 2026, FedEx parcel and FedEx Freight LTL shipping rates will be increased by an average of 5.9%. For FY 2026, FedEx Corporation (NYSE:FDX) forecasts 4% – 6% revenue growth rate YoY.

Longleaf Partners, managed by Southeastern Asset Management, released its Q2 2025 investor letter. Here is what the fund said:

“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was a detractor for the quarter. Despite macro headwinds like continued tariff threats and weak demand for higher value shipping, the company demonstrated resilience. The impending Express and Freight separation is expected to unlock value by providing greater flexibility and accountability, addressing the market’s undervaluation of Freight vs. peers and increasing capital discipline at Express. We were deeply saddened by the passing of Founder and Chairman Fred Smith. A legendary figure, he built FedEx into an industry giant through visionary leadership and brilliant strategic decisions. Beyond his immense business success, his quiet generosity and kindness, both globally and in our Memphis community, truly set him apart.”

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Disclosure: None. This article is originally published at Insider Monkey.