Al Root

FedEx stock rose early Tuesday after catching an upgrade ahead of a key event for the company on Feb. 12.

Wells Fargo analyst Christian Wetherbee took his rating to Buy from Hold and raised his price target to $380 a share from $295. FedEx stock was up 4% in early trading at $348.75 a share, while the S&P 500 and Dow Jones Industrial Average were up 0.1% and 0.3%, respectively.

"Ahead of the [FedEx] investor day next week, we are upgrading shares to Overweight," wrote Wetherbee in a Tuesday report. "We expect the company to outline solid multi-year targets and believe fiscal year 2027 could be a much better year for Express profit, generating solid upside to consensus."

FedEx's fiscal year ends in May, which means its fiscal 2026 is almost done. For 2027, Wetherbee sees earnings per share of $25, almost $4 better than the consensus call on Wall Street. He also sees a "path" to earnings per share of $30 in fiscal 2029

Improvements in terms of cost, pricing, and the economic situation are behind that upbeat call. Wetherbee expects the company to provide a three-year outlook and some positive comments on the first half of the year at the analyst event.

The gathering comes as FedEx works toward a spinoff of its freight business, which is expected to be completed mid-year.

FedEx Freight is a less-than-truckload business serving industrial customers who move items shorter distances and don't require a full truck. Old Dominion Freight Line, for instance, is a premier LTL player, and its shares typically trade for about 30 times the earnings expected over the coming 12 months. FedEx stock typically trades for closer to 12 times.

Overall, 56% of analysts covering FedEx stock rate shares Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%.

The average analyst price target for FedEx stock is about $321 a share, meaning shares have blown by the average price target in recent weeks.

Coming into Tuesday trading, FedEx stock was up 33% over the past three months. Investors are excited about the FedEx Freight spinoff and the potential for a better fiscal 2027.

Write to Al Root at allen.root@dowjones.com

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February 03, 2026 09:42 ET (14:42 GMT)

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