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FedEx Corporation (NYSE:FDX) landed upgrades on Wall Street on Thursday following the company's announcement on a major round of jobs cuts at the management level.
Bank of America boosted its rating on FedEx (FDX) to Buy from Neutral.
The firm said it is more confident in FedEx’s (FDX) outlook as it reduces excess capacity and enhances productivity.
Analyst Ken Hoexter said FDX's cost cutting focus could boost margins as earnings pass through. In addition, the shipping giant is said to continue to demonstrate structural pricing gains as the carriers focus on improving returns on investment. FedEx (FDX) is also noted to benefit from cross-border trade growth.
BofA increased its price objective on FDX to $233 from $204, which works out to 13X the FY24 EPS estimate and within the range of the 12X to 19X historical trading range.
Citi also upgraded FedEx (FDX) to Buy from Hold on Thursday with a more optimistic view on margins.
Shares of FedEx (FDX) rose 3.52% premarket to $209.33 after rallying 4.26% on Wednesday.