FedEx slips below $200 as investors turn cautious ahead of earnings

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Morgan Stanley is the latest firm to turn more cautious on FedEx Corporation (NYSE:FDX) ahead of the company's next earnings report.

Analyst Ravi Shanker and team believe FDX's FY23 could be off to a tougher start than expected, despite the easier comparables for the quarter. They warn that a fading macro outlook, the acceleration of the post-pandemic mean reversion, and continued cost headwinds put the full-year guidance from the company at risk of not being met.

The Morgan Stanley breakdown on FDX is that consensus numbers may come down into the print on the expectation that FDX will guide conservatively to reflect their lower economic forecasts.

The firm has an Equal weight rating on FedEx (FDX) and lowered price target of $250.

Shares of FDX are down more than 13% over the last six weeks and are off 23% YTD. FDX slipped below $200 for the first time since mid-May earlier in Wednesday's session.

FedEx (FDX) is expected to report FQ1 earnings in the next couple of weeks. The shipping giant missed consensus marks on both lines of its report the last time it was in the earnings confessional, which was the first double miss in more than two years.