© Reuters. FedEx (FDX) gains after being named catalyst call buy idea at Deutsche Bank
FedEx (NYSE:) shares jumped Thursday after the stock was named a Catalyst Call Buy Idea at Deutsche Bank, with analysts stating the company’s upcoming results next month can be a meaningful positive catalyst.
FedEx is currently up 3% at well over $232 per share, adding to its strong rise so far in 2023.
“We see little to no risk on the quarter itself, and we are very positive on the potential for 2024 earnings and guidance relative to consensus,” wrote the analysts, who have a Buy rating and a $282 price target on the stock.
Deutsche Bank estimates FDX’s fiscal 2024 EPS at $20.15 per share, which is 11% above current consensus, while they also assume about $500 million of structural cost reduction in both Express and Ground.
“Interestingly, we see some upside to our bullish 2024 estimates, as the company is targeting just under half of its $4 billion cost target to be realized in fiscal 2024. We estimate this would translate to $1-2 of additional upside to our fiscal 2024 EPS estimate,” added the analysts.
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