Morgan Stanley Comments On FedEx Asia Tour

According to Morgan Stanley, FedEx FDX offers one of the most interesting risk-rewards in its coverage. Morgan Stanley said that not only does it believe consensus is too low for FY12, but it believes FDX is at the beginning of a multi-year growth cycle similar to FY03-FY07. “Margins remain well below peak with a number of tailwinds (int'l mix, loss of DHL, yield mgmt, LTL restructuring, greater use of JIT, etc.) to go along with cyclical recovery. As density builds and margins recover, it should usher in several years of strong returns.” FedEx closed yesterday at $91.43.