FedEx shares hit a fresh record-high on Tuesday, UBS assigns Street-high price target of $380 on the stock

UBS raised its 12-month price target on FedEx Corp (FDX) from $320 to a Street-high level of $380, as the bank is confident that the shipping company will outstrip a consensus of estimates when it reports results on December 17th.

The median estimate by analysts points to earnings per share of $3.81.

FedEx shares closed higher for a sixth consecutive trading session in New York on Tuesday. It has also been the sharpest single-session gain since November 24th. The stock went up 1.48% ($4.41) to $301.45, after touching an intraday high at $303.63 and also a fresh all-time high.

Shares of FedEx Corporation have risen 99.36% so far in 2020 compared with a 14.59% gain for the benchmark index, S&P 500 (SPX).

In 2019, FedEx Corp’s stock went down 6.27%, thus, it underperformed the S&P 500, which registered a 28.88% gain.

“We expect FDX to deliver upside 2Q earnings and we are raising our estimate from $3.82/share to $4.20/share. Asia airfreight rates have risen sequentially which provides support for FDX’s Express performance while we believe the continued strength in e-commerce provides a strong revenue backdrop for Ground,” the Swiss bank said in an investor note.

Analyst stock price forecast and recommendation

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding FedEx Corporation’s stock price, have a median target of $308.00, with a high estimate of $380.00 and a low estimate of $250.00. The median estimate represents a 2.17% upside compared to the closing price of $301.45 on December 8th.

The same media also reported that at least 17 out of 28 surveyed investment analysts had rated FedEx Corporation’s stock as “Buy”, while 7 – as “Hold”.