Piper Jaffray Reiterates Overweight on FedEx, Raises PT to $126

Piper Jaffray reiterated its Overweight rating on FedEx FDX. At the same time, Piper Jaffray raised its price target on the company's stock from $116 to $126 after the company reported better than expected quarterly earnings results. In a research report published today, Piper Jaffray states, "Yesterday before the market FDX reported F4Q11 continuing EPS of $1.76 (+29.5% y-o-y) above Consensus of $1.72 and our $1.67 estimate... Management's above Consensus F2012 EPS guide and subsequent work on our model post F4Q11 results have given us greater conviction in Express operating margin improvement acceleration and Freight (LTL)'s strong swing to profitability during F2012. We've raised our twelve month price target from $116 to $126 – and despite the raise – see further material earnings/stock upside potential." On Wednesday, FedEx added 2.59% to its value to end the day at $91.44. Its shares lost some of yesterday's gains in today's pre-market trading, falling 0.15% to $91.30.