Deutsche Bank Says Buy FedEx (FDX)

Deutsche Bank has a Buy rating on FedEx FDX, as a judge ruled in favor of the company. In a note sent to clients, Deutsche Bank writes, "Last week, a U.S. District federal judge in Indiana dismissed most of the class action claims as he found FedEx Ground's drivers to be independent contractors (not employees). The judge dismissed the claims of workers in 20 class-action cases (out of 28) in CA, NY, NJ, and other states alleging that FedEx had misclassified their employment status, owed them back, overtime, and other damages. We view the ruling as an incremental positive for shares of Buy-rated FDX (Buy, $93.56) as it reduces uncertainty about the classification of its independent contractors in its FedEx Ground subsidiary." Shares of FDX gained 49 cents yesterday to close at $93.56, a gain of 0.5%.