Tuesday, December 7, 2010

FedEx (NYSE:FDX) Driven by Domestic Pricing, Volume Trends Says Goldman (NYSE:GS)

Goldman Sachs (NYSE:GS) is bullish on FedEx (NYSE:FDX) citing strong domestic pricing growth and increasing volume.

"We expect the upside to be driven by strong volume trends and domestic pricing growth. Our volume indicators, semiconductors and ISM, are both pointing positively, while a 14.4% growth in October IATA air cargo growth was above expectations," said Goldman.

EPS estimates were adjusted for full year 2011 from $5.26 to $5.25, for full year 2012 from $6.23 to $6.28, and for full year 2012 from $7.00 to $7.09.

Goldman maintains their "Neutral" rating on FedEx, which closed Monday at $93.29, dropping $1.71, or 1.80 percent. They raised their price target from $95 to $100.

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