NEW YORK, Jan 22, 2026, 05:00 (EST)
- Rothschild Redburn cut its rating on FedEx to Neutral from Buy, setting a price target of $317, Investing.com South Africa reported.
- Argus boosted its FedEx price target to $350 from $250 and reaffirmed its buy rating, MarketBeat reported.
Rothschild & Co Redburn lowered its rating on FedEx to Neutral from Buy, arguing that the stock’s current valuation already “fairly reflect[s]” the expected value from the planned spin-off of its freight division. TipRanks
The move follows a solid rally in FedEx shares, which have climbed roughly 37% over the last three months. The stock has hovered just below its 52-week peak, data from Investing.com shows.
Investors are wagering that spinning off FedEx Freight, the company’s less-than-truckload (LTL) segment— which consolidates smaller shipments from various customers onto a single truck—will unlock hidden value. Barron’s highlighted FedEx Freight as investors benchmark it against LTL rival Old Dominion Freight Line. The outlet estimated FedEx Freight’s fiscal 2025 revenue at $8.9 billion, alongside $1.3 billion in operating income.
Argus turned more optimistic, boosting its FedEx price target to $350 from $250 while sticking with a buy rating, MT Newswires reported. Price targets reflect where analysts expect a stock to trade roughly a year out.
Wolfe Research raised its price target to $355 from $347 and kept an Outperform rating after digging into FedEx Freight’s Form 10 filing ahead of the planned spin-off, according to Investing.com. The firm pointed out that FedEx Freight posted $546 million in operating income in the first half of fiscal 2026, the report noted.
Redburn has revised its target on FedEx, lifting the price target to $317 from $271 but maintaining a neutral rating, MT Newswires reported.
FedEx shares climbed 1.97%, closing Wednesday at $306.95, ahead of United Parcel Service and ZTO Express during a solid session for U.S. stocks, MarketWatch reported. The stock remains roughly 3.7% shy of its 52-week peak of $318.83 hit on Jan. 9, the report added.
FedEx plans to finalize the FedEx Freight spin-off by June 1, 2026, according to a Reuters brief. The new entity is set to trade on the New York Stock Exchange under the ticker FDXF.
CEO Raj Subramaniam described the Form 10 filing as a sign of “strong progress” in spinning off FedEx Freight into its own company. The soon-to-be FedEx Freight CEO, John Smith, labeled the move a “key milestone.” FedEx said the split will result in “two world-class companies.” FedEx Newsroom
A Filmogaz compilation identified 22 analysts covering FedEx, noting that eight are bullish while 10 remain indifferent over the past three months. The average 12-month price target stands at $305.91, with forecasts spanning from $210 to $360.
The message remains mixed, and the road ahead isn’t straightforward. MarketBeat lists the consensus rating as Hold, with an average price target of $303.03. It also pointed out that Redburn’s $271 target suggests downside risk from current levels; a setback in the freight segment or a cooling shipping cycle could challenge the stock’s recent valuation.
