Fedex: stock jumps on broker comments

(CercleFinance.com) - On Thursday BofA announced that it has upgraded FedEx shares from "neutral" to "buy", having increased its target price for them from 204 dollars to 233 dollars (closing price: 214.
5 dollars, +6%) .

In its comments, the broker justifies its decision by yesterday's announcement of potentially reducing its executive force by up to 10%.

Analysts estimate that this plan could enable the courier company, which had already cut 12,000 jobs since June, to save nearly 60 million dollars on an annualised basis.

BofA says that these initiatives reinforce the credibility of the cost reduction targets formulated by the company, starting with its forecast of seven billion dollars of savings by the end of the year.


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