FedEx (FDX) stock has "significant" runway as the company's focus on high-margin service-sensitive segments is expected to help sustain favorable competitive and pricing dynamics, UBS said in a Friday research report.

The company recently provided a lucrative multi-year framework for the business at its analyst meeting, including a revenue compound annual growth rate of 4% and 200 basis points of margin improvement through 2029, which analysts think is achievable, according to the note.

FedEx also detailed the path to realizing the targeted $2 billion in cost savings and highlighted the use of technology and the One FedEx program as additional cost drivers, analysts wrote.

The brokerage said it reiterated its buy rating on the stock and price target of $412 per share.

Price: 374.61, Change: +5.15, Percent Change: +1.39