Dahlman Rose Revises FedEx Estimates

Although FedEx Corporation FDX increased its earnings guidance modestly, “we are lowering our FY11 EPS estimate to $5.10 from $5.20 to reflect the $0.11 earnings miss to our estimate in 2Q11,” Dahlman Rose reports. “We also note that our prior FY11 estimate was close to the high end of the company's previous guidance,” Dahlman Rose writes. “Our FY12 EPS estimate increases modestly to $6.20 from $6.15. We are reiterating our BUY rating; and our price target of $97 remains unchanged as we apply a 17x multiple to our CY2011 EPS estimate of $5.70.” FedEx Corporation currently trades at $93.34.