JPMorgan Sees 34% Upside In FedEx After Lowering Price Target

FedEx Corporation's FDX price target was lowered to $346 (implying an upside of 33.82%) from $366, with an Overweight rating maintained on the stock by JPMorgan analyst Brian Ossenbeck.
Ossenbeck recommends staying on the sidelines into the FedEx fiscal Q1 earnings release on September 21. He says that while the significant underperformance of shares versus the S&P 500 Index and peer UPS UPS since late May combined with negative sentiment is "ingredients for a relief rally," he does not see a clear catalyst until fiscal Q3.
Additionally, at that point, the peak season surcharges will be in full effect just as costs related to the holiday surge flatten out, the analyst wrote.
Price Action: FDX shares closed lower by 0.69% at $259.22 on Thursday.