Argus has assigned a new 12-month price target of $305 on FedEx Corp (FDX) and maintained a “Buy” rating on the stock, while citing FDX’s “attractive valuation.”
FedEx shares closed lower for a seventh consecutive trading session in New York on Monday. It has also been the steepest single-session loss since December 18th. The stock went down 2.48% ($6.43) to $253.19, after touching an intraday low at $250.90, or a price level not seen since October 2nd ($250.00).
In 2020, FedEx Corp’s stock went up 71.69%, thus, it outperformed the S&P 500, which registered a 16.26% gain.
”FDX shares are trading at 14-times our FY22 EPS estimate, below the midpoint of the historical range of 9-20. On a price/sales basis, the shares are trading at a multiple of 0.9, near the high end of the five-year range of 0.5-1.0,” Argus analysts wrote in an investor note.
”The yield of about 1.0% is below the midpoint of the five-year range. In our view, the shares are still trading at attractive valuation levels, even after running up from $88 earlier this year, and are more than 10% below their all-time high.”
The new price target represents 16 times the firm’s 2022 EPS estimate.
Analyst stock price forecast and recommendation
According to CNN Money, the 24 analysts, offering 12-month forecasts regarding FedEx Corporation’s stock price, have a median target of $335.50, with a high estimate of $386.00 and a low estimate of $250.00. The median estimate represents a 32.51% upside compared to the closing price of $253.19 on January 4th.
The same media also reported that at least 18 out of 29 surveyed investment analysts had rated FedEx Corporation’s stock as “Buy”, while 6 – as “Hold”.