Jefferies Maintains Buy Rating On FDX

Jefferies is maintaining its Buy rating on FedEx Corp. FDX.

“While we brought our F4Q estimate back in line to $1.75 (we had been awaiting the call before revising F4Q), we make no changes to our F2012-13 estimates, nor our calendar year-end 2011 price target of $112 (27% upside),” Jefferies writes.

“FDX's EPS is roughly 35% below past-peak earnings vs. our transport coverage average of 6%. (Only Ryder offers more upside to past-peak EPS at 50%.) Combining this cyclical rebound with secular improvements in domestic package pricing and International Priority growth, we think FDX remains a compelling Buy.”

FedEx closed Thursday at $87.89.