Published March 21, 2025

11:54 AM EDT

Yuki Iwamura / Bloomberg / Getty Images

Key Takeaways

  • FedEx shares sank Friday after the company lowered its outlook for the third quarter in a row.
  • Several analysts lowered their price targets for the shipper’s stock in response.
  • The stock has lost about one-fifth of its value since the start of the year.

FedEx (FDX) shares sank Friday as several analysts dropped their price targets for the shipping giant’s stock after the company lowered its outlook for the third quarter in a row.

FedEx shares were down 9% near $224 in intraday trading Friday, and have lost about one-fifth of their value since the start of the year.

Analysts from UBS and Bank of America lowered their price targets to $331 and $272, respectively, following FedEx’s report, citing a greater-than-expected impact from inflationary pressures and economic uncertainty. However, both reiterated “buy” ratings, with their targets suggesting significant upside from Friday’s level.

Deutsche Bank analysts were slightly more bullish, maintaining their “buy” rating and $337 price target. They said that after previous negative surprises in FedEx’s reports, “we found the relatively clean and solid result to be a relief.”

“We understand that a guide down from a highly macroeconomically sensitive name is not going to be appreciated in today’s market, where investors remain on pins and needles,” the analysts said, but added they were “encouraged” by the company’s efforts to cut costs, and suggested the lower forecast “makes sense” in light of seasonality and macroeconomic headwinds.

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  1. Bank of America. “DRIVE’ing into uncertain macro; Lowers F2025 targets (again); PO to $272.”

  2. UBS. “Cost Reduction + Stable Price but Macro is the Key Lever.”

  3. Deutsche Bank. “F3Q Earnings Update: 10 Things……”