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FedEx Hits Record High on JP Morgan
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Shares of FedEx (FDX) have hit a record high today after the express delivery companys stock was upgraded by JP Morgan.
JP Morgan analyst Thomas Wadewitz and team raised FedEx to Overweight from Neutral.
They explain why:
We are upgrading FDX from Neutral to Overweight due to a higher degree of confidence in managements aggressiveness in executing their improvement plans following their large buyback announcement last week and also due to our view that capacity reductions and the initial shift of IE traffic to commercial lift has positioned FDX to better absorb the pressures from trade down.
FDX stock has already been strong in 2013, rising 38.9% (vs. the S&P 500 + 22.3%), but transports have also been strong (rails +30%; UPS +27%) and we note that FDX has lagged on a multi-year basis.
Versus muted upside for other transports, FDXs story is particularly attractive.
Shares of FedEx have gained 2.2% to $130.19, while United Parcel Service (UPS) has risen 0.6% to $94.33, also near a record high.
Deutsche Post (DPSGY) has gained 4.4% to $34.32 and Arkansas Best (ABFS) has advanced 1.2% to $27.19.