FedEx Price Target Raised Ahead of Earnings As Analyst Grows Increasingly Bullish on Stock

FedEx Corporation (NYSE: FDX) has seen its price target increased by Barclays analyst Brandon Oglenski, signaling a positive outlook for the transportation giant ahead of this week's earnings. The revised target, moving from $320 to $360, accompanies an Overweight rating, reflecting a potential 28% upside from here.

The analyst's optimism is fueled, in part, by the potential value to be unlocked from a strategic assessment of FedEx's Freight business. A potential spin-off of the Freight segment could generate between $10 billion and $20 billion in incremental equity value, according to Barclays. This move is anticipated to sharpen management's focus and improve capital allocation, leading to enhanced long-term performance for both the remaining FedEx entity and the spun-off Freight division. Markets are closely watching how FedEx management will move forward with the freight business.

Despite broader economic headwinds, including persistent weakness in industrial growth and continued volatility in travel demand expected to extend into 2026, Barclays is advocating for investments in companies with unique opportunities within the North American airlines and transportation sectors. FedEx is specifically highlighted as possessing such idiosyncratic potential, justifying the elevated price target and maintained Overweight rating. The analyst suggests that, despite the current market, FDX provides a unique and promising investment opportunity.

However, the broader analyst community presents a more varied perspective. An analysis of 21 experts reveals a range of ratings, with the previous street high at $345 bettered by Barclays today, to a bearish $200. The average 12-month price target of $283 indicates that the Street broadly see's FDX as fairly valued here.

While Barclays is confident in a higher valuation, the consensus average indicates a moderate level of optimism. This suggests that, while strategic initiatives may be promising and the market opportunity is present in the long-term, some short term concerns may linger for some analysts. Earnings will soon be upon us, and there will likely be shifts off the back of the print.