Rothschild Redburn has revised its rating on FedEx from Buy to Neutral, with a new price target set at $317. This adjustment comes after a notable upswing in FedEx’s stock, which has risen approximately 37% in the past three months and is currently just below its 52-week high. The firm argues that the stock is currently valued in line with expectations surrounding the company’s upcoming spin-off of its freight division.
Despite Rothschild’s cautious stance, Argus has taken a more bullish approach, raising its price target for FedEx significantly from $250 to $350 while reaffirming its Buy rating. The forecast reflects growing optimism among investors that the separation of FedEx Freight—responsible for consolidating smaller shipments into a single truck—will reveal significant hidden value. A recent estimation from Barron’s projects FedEx Freight’s fiscal 2025 revenue at $8.9 billion, complimented by an anticipated operating income of $1.3 billion.
Wolfe Research has also indicated confidence in FedEx’s performance by raising its price target from $347 to $355 and maintaining an Outperform rating. This optimism follows an analysis of FedEx Freight’s initial public filing, which revealed strong operating income of $546 million for the first half of fiscal 2026.
As FedEx shares continue to gain, they closed at $306.95, a 1.97% increase, and remain just 3.7% short of their peak value of $318.83 reached earlier in January. The upcoming spin-off of FedEx Freight is scheduled to be completed by June 1, 2026, with the newly independent entity set to trade under the ticker FDXF on the New York Stock Exchange.
CEO Raj Subramaniam described the filing as indicative of substantial progress towards the spin-off, while the new FedEx Freight CEO, John Smith, called this move a landmark achievement. FedEx maintains that the spin-off will lead to two highly competitive companies.
Analyst coverage on FedEx remains diverse, with 22 analysts providing insights—eight are optimistic on the stock, while ten adopt a neutral position. The average price target across forecasts stands at approximately $305.91. However, some warnings persist about potential downside risk, notably in light of Redburn’s earlier target suggesting the possibility of a downturn if challenges arise within the freight segment or a general cooling in the shipping market.
Overall, the varying viewpoints among analysts highlight the complexity of the current market environment for FedEx, emphasizing the potential for both growth and volatility in the future.