Outlook Is Bright For FedEx

Deutsche Bank came impressed with FedEx Corporation FDX after Investor Meetings. In the research note, Deutsche Bank writes, "We came away from FDX's investor meetings with increased conviction in our long-term bullish thesis. The stock remains one of our favorite transport stocks given a compelling risk/reward as we believe shares could double over the next few years as earnings growth accelerates, margins improve, and cash generation increases. We see strong margin improvement in FY12 and beyond as cost headwinds (pension expense, incentive compensation, and taking aircraft out of the desert) likely moderate and its yield initiatives bear fruit. Buy." FDX Closed at $86.37 yesterday.