FedEx Receives a Hold from BMO Capital

By Ryan Adsit

BMO Capital analyst Fadi Chamoun initiated coverage with a Hold rating on FedEx (NYSE: FDX) yesterday and set a price target of $190. The company’s shares opened today at $184.71, close to its 52-week high of $187.

According to, Chamoun is a 5-star analyst with an average return of 12.4% and a 71.2% success rate. Chamoun covers the Services sector, focusing on stocks such as WestJet Airlines Ltd., Kansas City Southern, and Magna International.

Currently, the analyst consensus on FedEx is Moderate Buy and the average price target is $195.14, representing a 5.6% upside.

In a report issued on November 15, Stifel Nicolaus also downgraded the stock to Hold with a $186 price target.

The company has a one year high of $187 and a one year low of $119.71. Currently, FedEx has an average volume of 1.55M.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. Earlier this month, John Merino, the CVP PRIN ACCT OFFICER of FDX sold 10,280 shares for a total of $1,868,082.

FedEx Corp. provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. It operates through four segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. The FedEx Express segment offers time-certain delivery to more than 220 countries and territories. This segment also includes FedEx Trade Networks, Inc., which provides international trade services, specializing in customs brokerage and global ocean and air freight forwarding; and FedEx SupplyChain Systems, Inc., which offers a range of supply chain solutions. The FedEx Ground segment includes FedEx Ground Package System, Inc., which provides small-package ground delivery services. This segment also includes FedEx SmartPost, Inc., which specializes in the consolidation and delivery of low-weight, less time-sensitive business-to-consumer packages using the U.S. Postal Service for final delivery. The FedEx Freight segment includes FedEx Freight, Inc., which provides less-than-truckload freight services across all lengths of haul, offering. This segment offers freight delivery service to most points in Canada, Mexico, Puerto Rico and the U.S. Virgin Islands and includes FedEx Custom Critical, Inc., which is a provider of time-specific, critical shipment services. The FedEx Services segment includes FedEx Corporate Services, Inc., which provides sales, marketing, information technology, communications and back-office support to other companies in the FedEx Group. This segment also includes FedEx TechConnect, Inc., which is responsible for customer service, billings and collections for its U.S. customers and offers technical support services; and FedEx Office & Print Services, Inc., which provides document and business services and retail access to its package transportation businesses. The company was founded by Frederick Wallace Smith on June 18, 1971 and is headquartered in Memphis, TN.