FedEx Faces Downgrade Amid Demand Challenges, Tariff Risks

FedEx is set to report its first-quarter earnings with analysts expecting a slight increase in earnings per share and revenue compared to the previous year. Despite solid recent financial results and operational efficiency, several major analysts have recently downgraded or maintained cautious ratings on FedEx stock, citing demand challenges and broader economic uncertainties. Evercore ISI downgraded FedEx from Outperform to In Line due to rising demand pressures and limited near-term growth potential, while Bernstein maintained a Market Perform rating but lowered the price target to $247. Similarly, Bank of America downgraded FedEx to Neutral with a price target of $240, reflecting concerns about the expiration of de-minimis exemptions and recent tariff changes impacting the company's outlook. The Federal Express segment remains the core revenue driver, but analysts note risks related to evolving macroeconomic conditions and regulatory changes that may affect future earnings growth. Overall, the consensus points to modest growth with caution advised due to near-term uncertainties and restructuring efforts.