FedEx Posts In-line Quarter

FedEx recently reported 1Q11 EPS of $1.20, in line with Goldman Sachs and consensus estimates, though there seems to be decelerating volume trends in International Priority. Goldman believes FedEx should benefit from improving domestic pricing, given a more rational industry. However, FedEx stock performance also hinges on new fleet investments, potential M&A, domestic China competition/regulation, LTL pressures, and US regulatory/litigation outcomes. For these reasons, Goldman continues to prefer UPS UPS to gain more direct exposure to positive industry trends. UPS is on Goldman's Conviction-Buy list. Downside Risks to FedEx include macro slowdown and litigation issues. Upside risks include China opportunity, improved domestic pricing, and domestic ground growth. Goldman Sachs remains Neutral on FedEx with a price target of $95 FedEx is currently trading down almost 1% today. Get free trades at tradeMONSTER!