FedEx Faces Uncertain Future Ahead of Earnings Report
As FedEx prepares to release its earnings report after the bell today, analysts are questioning the company’s future prospects.
Despite a 20 percent increase in stock prices since December, some analysts believe that the optimism is not yet justified.
However, Helane Becker of Cowen has an outperform rating on FedEx due to the company’s new management team and their focus on cutting costs.
Earlier this year, FedEx announced a cost-cutting plan that involved laying off 10 percent of its senior managers.
While this move may help the company reduce costs, it remains to be seen if it will be enough to secure the company’s future.
Analysts caution that FedEx and its competitors, like UPS, must remain vigilant about costs, especially during peak shipping seasons.
Furthermore, the threat of a consumer-led recession could cause people to retrench and spend less, leading to a sell-off in FedEx shares.
Despite these concerns, Helane Becker remains optimistic about the company’s long-term prospects and predicts a price target of 220.
As investors await the earnings report, it remains to be seen if FedEx can deliver strong results and reassure investors about its future.