On Friday, TD (TSX:TD) Cowen expressed continued confidence in FedEx (NYSE:FDX), maintaining an Outperform rating and a price target of $293.00. This stance comes in anticipation of the company's third fiscal quarter earnings report, scheduled for release after the market closes on March 21, with a subsequent conference call at 5:30 PM ET.
The firm anticipates a favorable earnings surprise from FedEx, projecting an earnings per share (EPS) of $3.66, which surpasses the consensus estimate of $3.51. The analyst's forecast is buoyed by recent International Air Transport Association (IATA) data that showed a significant year-over-year improvement in the December quarter, as well as inventory restocking activities observed in January after the holiday season and before the Chinese New Year.
FedEx's current dividend yield is approximately 2%, adding an additional aspect of shareholder value to the company's stock profile. The positive outlook from TD Cowen is based on the latest industry data and the company's performance in the recent past, suggesting that FedEx may exceed market expectations in its upcoming financial disclosure.
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