UPS - FedEx - HSBC Forecasts Dips In CapEx Intensity And Strong Growth In Small Parcels & Freight | Benzinga
HSBC analysts Parash Jain, Deepak Maurya and Bruce Chu initiated coverage on FedEx Corp (NYSE: FDX) with a Buy rating and a price target of $330.
The analysts are bullish on the company's effort to lower costs and believe even partial success can be highly rewarding for shareholders and accelerate adjusted operating margins to 8.4% by FY26.
In particular, FedEx expects to curb expenses by $6 billion by FY27 by deploying One FedEx, Drive, and Network 2.0 cost-saving initiatives.
They estimate FedEx to decrease the EBIT margin gap with its peer, United Parcel Service Inc (NYSE: UPS), by integrating ground and express delivery ...