Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

FedEx gets Loop Capital’s upgrade on freight spin off

admin by admin
December 20, 2024
in Stock
0
FedEx gets Loop Capital’s upgrade on freight spin off
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

Investing.com — Loop Capital upgraded FedEx Corp (NYSE:FDX) to “buy” from “hold”, also raised its price target to $365 from $288, factoring the value creation from the planned spin-off of its FedEx Freight division and a recent dip in the company’s stock price.

FedEx shares were up more than 7% in premarket trading.

The company said it would spin off FedEx Freight into a standalone public entity within 18 months, after a six-month review. Loop Capital sees the move as a key value driver, estimating a 32% upside for FedEx shares based on a sum-of-the-parts valuation.

The parcel giant reported adjusted earnings per share of $4.05 for its fiscal second quarter, slightly beating analysts’ estimates of $4.01. However, revenue fell 0.9% year-on-year, coming in below consensus expectations.

FedEx’s Express business delivered a 13% rise in adjusted operating income, driven by higher revenue per package and improved margins, while its Freight unit faced challenges, with operating income falling 23% due to weaker less-than-truckload volumes and shrinking margins.

FedEx revised its full-year guidance, forecasting flat revenue growth compared to previous low single-digit gains and cutting its adjusted EPS estimate to $19-$20 from $20-$21.

While expressing ongoing skepticism over FedEx’s ability to sustain margin improvements in its core Express business, Loop Capital noted that the Freight spin is the primary catalyst for its upgrade.

The brokerage cautioned that potential U.S. tariffs in 2025 could negatively impact FedEx’s outlook.

 

 

This post appeared first on investing.com

Previous Post

Boohoo shareholders reject Mike Ashley’s bid for board representation

Next Post

Costco stock’s steep valuation raises concerns: is it time to sell?

admin

admin

Next Post
Costco stock’s steep valuation raises concerns: is it time to sell?

Costco stock’s steep valuation raises concerns: is it time to sell?

Trending News

Del Monte files for bankruptcy: what went wrong with the iconic food brand

Del Monte files for bankruptcy: what went wrong with the iconic food brand

July 2, 2025
Top FTSE 100 and FTSE 250 shares to watch next week

Top FTSE 100 and FTSE 250 shares to watch next week

November 15, 2024
MicroStrategy rebrands as Strategy amid fourth straight quarterly loss

MicroStrategy rebrands as Strategy amid fourth straight quarterly loss

February 6, 2025
Subscribe to Insightful Word


    Recent News

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    August 7, 2025
    Affirm stock price is rising: is it a buy before earnings?

    Affirm stock price is rising: is it a buy before earnings?

    August 7, 2025
    Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    August 7, 2025
    Goldman Sachs boosts Nvidia price target to $200 ahead of Q2 earnings

    Goldman Sachs boosts Nvidia price target to $200 ahead of Q2 earnings

    August 7, 2025

    Recent News

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    August 7, 2025
    Affirm stock price is rising: is it a buy before earnings?

    Affirm stock price is rising: is it a buy before earnings?

    August 7, 2025

    Latest News

    • Dow futures soar 250 points today: 5 things to know before Wall Street opens
    • Affirm stock price is rising: is it a buy before earnings?
    • Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.