FedEx Risks Mount As Tariff Pressure Remains: Analyst Warns Of Increased Reporting Complexity
1. Bank of America maintains Buy rating but lowers price target to $270. 2. FedEx is progressing on cost initiatives but faces international volume headwinds. 3. April and May saw declines in Trans-Pacific volumes as customers relied on inventories. 4. FedEx estimates significant drop in de minimis tariffs on Chinese retailers to ~50%. 5. Partnership with Amazon could boost FedEx’s domestic ground segment financially.