Deutsche Bank Reiterates FedEx Rating Following 4.9% Rate Increase

Deutsche Bank is reiterating its Buy rating on FedEx Corporation FDX following the company's announcement that it will increase FedEx Ground and FedEx Home Delivery shipping rates by a net average of 4.9% effective January 3, 2011. “The increase effectively matches UPS Ground's previously announced 2011 rate increase,” Deutsche Bank writes. “FedEx Ground and FedEx Home Delivery will increase rates by 5.9%, and reduce the fuel surcharge by one percentage point. FedEx SmartPost will also increase rates next year.” FedEx closed Tuesday at $92.66.