JPMorgan Slashes FedEx Corporation (FDX) PT to $260 Over Demand Concerns

On June 5, JPMorgan trimmed the price target for FedEx Corporation (NYSE:FDX) from $280 to $260 while reiterating an Overweight rating on the stock. Analysts have adjusted their outlook based on weak demand trends and the current tariff climate as the earnings date for FDX approaches.

FedEx's earnings call is scheduled for June 24, where many significant topics will be discussed. These include capacity utilization at FedEx, a recent collaboration with Amazon.com, Inc. (NASDAQ:AMZN) for bigger packages, and savings goals with reference to Network 2.0. FedEx Corporation (NYSE:FDX) has solid operational efficiency, reflected by an $11 billion EBITDA and a 1.24 current ratio. Latest movements in fuel and extra handling surcharges have also drawn the attention of analysts.

Despite the short-term obstacles, JPMorgan thinks FedEx is compelling based on a discounted sum-of-the-parts basis, keeping in mind the Network 2.0 integration and the spin-off resulting in FedEx Freight. However, the analysts warned investors that ongoing B2B friction could affect near-term performance.

FedEx is a leading global logistics provider offering a comprehensive suite of services, including express shipping, ground delivery, and end-to-end supply chain solutions.

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