- After a week of hosted meetings, Citi comes away bullish on FedEx (NYSE:FDX). Firm sees the following opportunities in the coming years:
- TNT is a strong strategic fit, providing substantial accretion in F18 and beyond.
- Express’ Profit Improvement Program has legs beyond F16.
- Ecommerce will provide valuable growth in a still sluggish transportation market.
- Citi says elevated capex of $5B/year is likely to continue, but that the investment is justified.
- Price target $180. Implied upside 12%.
- Now read FedEx May Not Lose To Amazon, The Competitor; But Has Surely Lost Amazon, The Customer »