FedEx's (FDX) acquisition of a non-controlling stake in InPost will likely be accretive to earnings as management expects to follow-on commercial deal to lower the cost to serve B2C business in Europe, BofA Securities said in a Tuesday note.
The brokerage maintained its 2026 EPS guidance of $18.55 but raised its 2027 and 2028 forecasts to $21.75 and $24.60, respectively, from $21.45 and $23.95 earlier, according to the note.
BofA said it sees momentum within the company's network integration, cost-cutting approach, share gains, the upcoming spin of FedEx Freight, and benefits from the potential end of a prolonged freight recession.
The brokerage said it reiterated its buy rating on the stock and raised its price target to $414 per share from $408.
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