Piper Jaffray Reiterating Overweight On FedEx (FDX)

Piper Jaffray is reiterating its Buy rating and $115 price target on shares of FedEx Corporation FDX after it reported earnings yesterday. In a note sent to clients, Piper Jaffray writes, "Yesterday before the market FDX reported F2Q11 continuing EPS of $1.16 (+11.1% y-o-y) which was below Consensus $1.31 and our $1.30 estimate. Downside to our estimate was driven by expense disappointments at Express ($0.11/share) and Ground ($0.02/share) as total revenue was modestly above our projection. Management raised its midpoint F2011 EPS 5% implying meaningful margin improvement during F2H11. Our Express and Freight (LTL) margin acceleration expectations remain very much in tact despite disappointing near term results. We reiterate our Overweight rating and $115 price target." Shares of FDX gained $1.83 yesterday to close at $94.22, a gain of almost 2%.