Deutsche Bank forecast 20 percent potential upside in FedEx Corporation
“We see at least 20 percent additional upside potential in
In addition, the analyst conservatively estimates 20 percent EBITDA improvement by 2018 versus FY16, which he believes would bring $35, or 20 percent, improvement in share price of
The analyst projects $300 million of incremental cost savings in FY'17 and $750 million potential synergies from TNT by end of FY2020. The analyst also conservatively expects $800 million of annual share repurchase versus $2 billion average over last two years.
Meanwhile, Mehrotra noted that investors need not be concerned over Amazon’s increasing investments in trailers, aircraft and small parcel delivery companies — the online retail giant accounts for only 3 percent of FedEx’s revenue.
“While these remain watch items, we do not believe Amazon represents significant risk to FDX over the near and mid-term,” Mehrotra highlighted.
Shares of FedEx closed Tuesday’s trading at $171.53. Based on Tuesday’s close, the $210 target implies a potential return of 22 percent.
|Nov 2016||Axiom Capital||Maintains||Buy|
|Oct 2016||Goldman Sachs||Maintains||Buy|
|Oct 2016||Credit Suisse||Maintains||Outperform|
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