FedEx's stock rises toward 5th-straight gain after J.P. Morgan boosts target ahead of earnings
Shares of FedEx Corp. rallied 1.4% in morning trading Monday, putting them on track for a fifth straight gain, after an upbeat call from J.P. Morgan ahead of the Tuesday release of the package delivery giant's fiscal second-quarter results. Analyst Brian Ossenbeck raised his stock price target to $154 from $140, citing progress toward the resolution of the U.S.-China trade war. "The stock remains the favored proxy to play a trade war de-escalation and we are increasing our Dec-20 target to reflect recent progress on this front, as well as early indications of stability in global PMI components which track [FedEx's stock] closely," Ossenbeck wrote in a note to clients. He reiterated the neutral rating he's had on FedEx since March, citing concerns over the company's Express business and declining net fuel benefits. Ossenbeck expects second-quarter earnings per share of $2.70, below the FactSet consensus of $2.78. FedEx is scheduled to report results after Tuesday's closing bell. The stock has climbed 7.3% during the 5-day win streak but has has 3.2% over the past three months. In comparison, the Dow Jones Transportation Average has gained 1.7% the past three months and the Dow Jones Industrial Average has advanced 4.6%.
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