Piper Jaffray Boosts Target, Estimates for FedEx (FDX)

in Gold Gold Investment by admin — March 19, 2010 5:42 am | no comments

Package delivery giant FedEx Corporation ( FDX ) saw its price target and earnings estimates raised on Friday by analysts at Piper Jaffray. The analyst, which maintained its “Overweight” rating on the stock, boosted its price target to $110 from $100. FedEx shares had closed at $92.67 on Thursday. The firm noted that “Yesterday before the market open FDX reported F3Q10 EPS of $0.76 (144.2% y-o-y growth) above our $0.75 estimate and Consensus $0.72. We’ve raised our calendar 2010 and 2011 EPS estimates roughly 6.5% and 9.4% respectively – 4.0% on average now above Consensus…FDX has strong volume momentum and is focused on improving price which could provide further upside to our margin assumptions moving forward…Core Express and Ground trending well above expectations…Freight (LTL) operating loss materially larger than anticipated.” Jaffray also said that “We’ve raised our calendar 2010 and 2011 EPS estimates roughly 6.5% and 9.4% respectively – 4.0% on average now above Consensus. FDX has strong volume momentum and is focused on improving price which could provide further upside to our margin assumptions moving forward.” FedEx shares were mostly flat in premarket trading Friday. The Bottom Line Shares of FDX have a dividend yield of .47%, based on last night’s closing stock price of $92.67. The stock has technical support in the $81-$82 price area. If the shares can firm up, we see overhead resistance around the $92-$97 price levels. We would remain on the sidelines for now. FedEx Corporation ( FDX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .