FedEx (FDX) Stock Soars to Record High on J.P. Morgan Upgrade Ahead of Freight Spinoff

Key Takeaways

• J.P. Morgan elevated FedEx (FDX) rating to Buy, increasing the price target from $432 to $460
• Shares surged 2.8% to reach $411.20 on Wednesday, after touching a record peak of $408.85
• The company plans to separate its freight division on June 1; the segment projects $8.7 billion in revenue for FY2026
• Over the past year, FDX has surged 82%, significantly outperforming competitor UPS with only a 5% gain
• Fourth-quarter FY2026 results are scheduled for June 23; consensus estimates predict EPS of $5.91, though J.P. Morgan forecasts $6.40

Shares of FedEx (FDX) climbed to a record peak of $408.85 on Wednesday before advancing further to $411.20 — marking a 2.8% increase — following J.P. Morgan’s decision to upgrade the delivery giant to Buy.

FedEx Corporation, FDX

Analyst Brian Ossenbeck elevated his price objective to $460 from the previous $432, pointing to the forthcoming freight division separation and a more favorable risk/reward profile as the company approaches its earnings announcement.

The upgrade propelled FDX to unprecedented territory, with the stock now commanding a market capitalization of $95.4 billion.

Rival UPS also experienced gains on Wednesday, rising 1.2% to $103.32, though the performance disparity between the two logistics leaders remains substantial.

Over the trailing twelve months, FedEx has climbed 82%. UPS has managed only a 5% advance during the identical timeframe.

June 1 Freight Unit Separation

FedEx is preparing to spin off its less-than-truckload freight division on June 1. This segment, which primarily serves industrial clients shipping merchandise across shorter routes, competes directly with companies like Old Dominion Freight Line.

A primary driver behind the separation strategy is valuation disparity. FedEx currently trades at approximately 18 times forward earnings projections. Old Dominion commands a 38 times multiple. The spinoff aims to unlock FedEx Freight’s underlying value through standalone public market recognition.

FedEx Freight anticipates generating $8.7 billion in revenue and $1.1 billion in operating earnings for FY2026.

For the parent FedEx corporation, Wall Street analysts forecast approximately $94 billion in total revenue and $6.5 billion in operating income for the fiscal year.

Upcoming Quarterly Results

FedEx will release its fourth-quarter fiscal 2026 financial results on June 23. Wall Street consensus calls for earnings per share of $5.91, representing a decline from the prior year’s $6.07.

Ossenbeck holds a more bullish outlook. His model anticipates $6.40 per share.

Given that FedEx’s fiscal year concludes in May, the Q4 announcement will cap off a remarkable year during which the stock more than doubled from its cyclical lows.

Following Wednesday’s rating change, 63% of analysts tracking FDX now assign it a Buy recommendation. This exceeds the typical 55%–60% Buy-rating threshold observed across S&P 500 constituents.

The consensus analyst price objective stands at approximately $417.

UPS, in comparison, receives a Buy rating from merely 48% of its analyst coverage. The average price target for that stock is $114.

Separately, UBS reaffirmed its Buy stance on FedEx, modestly adjusting its target to $445 from $446 in anticipation of the freight division separation.

FedEx has also recently disclosed the redemption price for its €354.9 million notes maturing in 2031, establishing May 28, 2026 as the redemption date.

The post FedEx (FDX) Stock Soars to Record High on J.P. Morgan Upgrade Ahead of Freight Spinoff appeared first on Blockonomi.