Piper Reiterates Overweight On Fedex, Sees Massive Upside (FDX)

Piper Jaffray is reiterating its Overweight rating and $110 price target on Fedex, after the company reported earnings before the bell yesterday. In the research note, Piper Jaffray writes, "FDX reported F1Q11 EPS of $1.20 (107% y-o-y growth) below our $1.25 estimate and Consensus $1.21. Downside to our estimate was all costs a large portion we believe one time related to (1) Express aircraft redeployment costs into ramping demand and (2) upped purchased transportation at Freight (LTL). F2Q11 EPS guidance was below Consensus and conservative in our opinion, however, full year F2011 EPS was raised. Our thesis remains intact despite the near term disappointment as we continue to see material EPS upside to our already above Consensus EPS estimates." Shares of Fedex lost $3.22 yesterday to close at $82.72, a loss of 3.75%. Get free trades at tradeMONSTER!