WERN - FedEx and UPS headline Credit Suisse's list of top transportation stocks

Credit Suisse started off coverage on the transportation and logistics sector with a broadly positive view. The firm pointed to the steep discounts with transports to the broader market and strong fundamentals. "We see many transportation companies as having strong fundamentals to support their valuations, with less dependence on upbeat narratives relative to other areas of the market," wrote analyst Ariel Rosa. "We believe current valuations present many attractive opportunities for investors with a long-term horizon," added Rosa. Credit Suisse reiterated an Outperform rating FedEx (NYSE:FDX). Even though the shipper faces operational uncertainties, Rosa and team view its current valuation as too cheap given its integral role in global logistics. Potential upside to consensus EPS is seen as FDX shifts its focus to revenue quality and nears the completion of its integration of TNT Express, which is expected to boost margins. Credit Suisse raised its price target on FedEx (FDX)

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FedEx and UPS headline Credit Suisse's list of top transportation stocks