Citi supports Buy rating for FedEx due to cost cuts and plans to spin off Freight.

From Yahoo Finance: 2025-06-23 12:47:00

FedEx Corp. has been impacted by a weaker industrial economy, leading to lowered profit guidance and a 19.4% stock drop year-to-date. Citi analyst Ariel Rosa maintains a Buy rating with a $267 price target, citing strategic changes and cost-cutting efforts to improve efficiency and earnings despite challenges. FedEx is moving forward with its Network 2.0 plan, integrating Express and Ground units and preparing to spin off its Freight business for more focused growth potential. The company continues to benefit from its DRIVE cost-cutting program, aiming for margin improvement despite uncertain demand. FedEx Corp. provides global package and freight delivery services, with a focus on efficiency and innovation in the face of challenging market conditions.

Read more: Citi Cites FedEx’s (FDX) Cost Cuts and Freight Spin-Off to Support Buy Rating