Deutsche Bank Reiterates Buy Rating, $136 PT On FDX

Deutsche Bank is reiterating its Buy rating and $136 PT on shares of FedEx Corporation (NYSE: FDX).

“Although weather and fuel were significant headwinds in FQ3, our estimate of $0.94 is 9% below consensus and our sense is that better-than-expected volume growth should offset some of the incremental cost headwinds from weather and the lag in the fuel surcharge,” Deutsche Bank writes.

“Buy-rated FDX is our favorite transportation stock to own given a compelling risk/reward equation, strong earnings growth, and its operating leverage. Risks include uncertain results at FedEx Freight, rising fuel prices, weather, and the broader economy.”

FedEx Corporation closed Wednesday at $91.60.