(CercleFinance.com) – BofA announced on Thursday that it had raised its recommendation on FedEx from ‘neutral’ to ‘buy’ with a price target raised from 204 to 233 dollars.
In a research note, the intermediary justifies its decision by the announcement yesterday of a proposed job cuts to affect 10% of the executives of the American carrier.
According to the analyst’s calculations, this plan could allow the courier company, which had already cut 12,000 jobs since June, to save nearly 60 million euros on an annualized basis.
According to BofA, these initiatives reinforce the credibility of the cost reduction objectives formulated by the company, starting with its forecast of seven billion dollars in savings by 2027.
“We are more confident about FedEx’s outlook now that the group has reduced excess capacity and taken steps to improve productivity,” he concludes.
Copyright © 2023 CercleFinance.com. All rights reserved.
The information and analyzes disseminated by Cercle Finance only constitute a decision-making aid for investors. The responsibility of Cercle Finance cannot be held directly or indirectly following the use of information and analyzes by readers. It is recommended that any uninformed person consult a professional adviser before any investment. This indicative information does not in any way constitute an incitement to sell or a solicitation to buy.
Did you like this article ? Share it with your friends with the buttons below.
