FedEx Freight Holding Company Inc: BMO raises target price to $150 from $140

BMO Capital has raised its price target for FedEx Freight Holding Company Inc to $150 from $140, while maintaining its Market Perform rating. The adjustment follows strong performance in the company’s third-quarter fiscal 2026 results, which exceeded expectations and led to upward revision of full-year outlook. FedEx reported adjusted earnings per share of $5.25, surpassing the forecasted $4.11, and revenue of $24 billion, exceeding the expected $23.48 billion.

The firm highlighted strong execution across both commercial and operational fronts as key drivers of the upgraded outlook. However, BMO noted that incremental headwinds, including variable compensation and weaker performance in the LTL segment, are expected to offset some cost efficiencies in the near term. Analysts from UBS, TD Cowen, and Evercore ISI have also raised their price targets, citing momentum in FedEx Express, volume and yield growth, and margin expansion despite inflationary pressures.

Despite the positive analyst sentiment, some platforms suggest the stock may be overvalued at current levels. Investors are advised to consider both the company’s strategic execution and broader market dynamics when evaluating the stock.