Street View: FedEx to face near-term cost pressures, brokerages say

By Reuters News

** FedEx FDX.N said it is paying more to hire extra truckers — weakening margins in its core US express delivery segment in Q3; likely to hit harder in the holiday season quarter

** Shares down 1.8% to $299 premarket


FOCUS ON 2027

** J.P. Morgan ("overweight," PT: $400) expects near-term pressure amid uncertainty and weaker Q4 outlook, with no historical seasonality to support Q127 expectations

** TD Cowen ("buy," PT: $354) sees transitory costs as the primary pressure, expects it to continue into 2027

** Truist Securities ("buy," PT: $350) sees headwinds

as manageable; notes "the recovery of higher transportation costs through customer pricing will likely be gradual given contractual commitments"

** Jefferies ("buy," PT: $360) expects cost headwinds to largely abate by 2027; says underlying earnings trajectory remains intact

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