Dhirendra Tripathi
Investing.com – FedEx (NYSE:FDX) shares traded 7% higher Friday as its better-than-expected February quarter performance had analysts raising their price targets for the logistics giant.
On Thursday, the company reported earnings of $939 million, or $3.47 per share, in the February quarter, while surveyed analysts were expecting the company to report EPS of $3.23, StreetInsider said. This compares to last year’s net income of $371 million, or $1.41 per share.
Goldman Sachs (NYSE:GS) analyst Jordan Alliger hiked the price target to $365 from the prior $356, according to StreetInsider. BofA (NYSE:BAC) analyst Ken Hoexter also raised the target to $351 from $346 earlier on expectations of continued strength.
The shares are trading some 8% off their 52-week high of $305.59, the peak being almost three times their low of $103.41 for the period.
Goldman’s new price is 29% higher than the prevailing prices while BofA’s is 24% higher.
FedEx has set aside a capex of $5.7 billion for 2021 financial year, higher than previously forecast. The higher capex allocation assumes continued recovery in U.S. industrial production and global trade, no additional Covid-19-related business restrictions and current fuel price expectations.