HSBC upgrades FedEx to Buy, raises target

HSBC upgraded FedEx to Buy from Hold and raised its price target to $370 from $340, citing stronger operations, improved pricing, a shift toward higher-yielding business-to-business shipments and earnings momentum. The firm lifted its estimates after FedEx exceeded quarterly earnings expectations and raised its fiscal 2026 guidance; its revised outlook also reflects buybacks and improved margins. Despite the stronger outlook, FedEx shares had weakened after the FedEx Freight spinoff, and the company’s cautious near-term outlook and cost pressures remain concerns for investors.