NEW YORK, Jan 22, 2026, 13:06 (EST)
- Argus has upgraded FedEx to a “strong-buy,” pushing the shares higher in early afternoon trading in New York.
- Wall Street estimates range from about $210 up to $360, with investors zeroing in on FedEx Freight’s planned split in June 2026.
- Rothschild Redburn downgraded FedEx to neutral, but Wolfe raised its price target to $355 following a spin-off filing review.
FedEx Corp shares climbed Thursday following an upgrade from research firm Argus, which raised its rating to a “strong-buy.” This move adds to a recent flurry of analyst interest in the stock. Shares were trading roughly 1.2% higher at $310.72 in early afternoon sessions in New York. MarketBeat
Investors are zeroing in on FedEx’s move to spin off FedEx Freight, its less-than-truckload division that combines smaller shipments from different customers onto a single truck. The stock has jumped roughly 37% in the last three months and now trades within about 1% of its 52-week high. Analysts remain split on whether there’s much room left to run.
The tug-of-war intensified last week, as Rothschild & Co Redburn downgraded the stock while other firms raised targets to $350-$355, digging into the freight unit’s financials. Those higher price points are clashing with more conservative estimates near the low $300s, just ahead of the spin-off.
Argus bumped up its FedEx price target to $350 from $250 this week, maintaining a buy rating, MarketBeat reported. The company beat profit estimates in its latest quarter and raised its fiscal 2026 earnings forecast, the report added.
Rothschild & Co Redburn’s Oliver Holmes isn’t convinced, downgrading FedEx to neutral. He flagged that “investor perception” of the less-than-truckload sector has grown overly optimistic, driving valuations up. Barron’s
Wolfe Research pushed its price target on FedEx to $355 from $347 and stuck with an outperform rating, following a deep dive into FedEx Freight’s Form 10. The filing, a key step before the spin-off, revealed $546 million in operating income for the first half of fiscal 2026 and an operating ratio of 87.6%, a key efficiency metric, Investing.com reported.
Benzinga data revealed FedEx’s average 12-month price target at $305.91, ranging from a low of $210 to a high of $360. Barclays recently nudged its target up to $360, and Truist Securities boosted theirs to $330. Morgan Stanley, however, maintained an underweight rating with a $210 target, according to the Benzinga table.
FedEx plans to spin off its freight division by June 1, 2026, aiming to list the independent business on the NYSE under the ticker “FDXF,” according to Transport Intelligence. CEO Raj Subramaniam described the recent Form 10 filing as evidence of solid progress and said the move is designed to “unlock long-term value” for shareholders. Transport Intelligence
Yet, the re-rating has its limits if investors have already priced in the break-up. Rothschild’s sum-of-the-parts analysis put FedEx’s combined value near $316 a share, suggesting gains from the freight spin-off might be balanced out by decline in the parcel business, reported.
At this stage, the broad gap in targets shows investors are still unsure how a stand-alone FedEx Freight will price and expand — and which costs will stick with the parent company. Rival United Parcel Service remains the closest public peer in parcel delivery, but the freight unit faces a different test, relying heavily on pricing discipline and demand to drive results.
