BofA Hikes FedEx Price Target Following Strategic Investment in Europe's InPost

Bank of America has raised its price target for FedEx shares to $414 from $408, maintaining a 'Buy' rating on the logistics giant. The upward revision follows FedEx's strategic decision to invest in the European parcel delivery firm InPost to optimize its regional operations. This partnership is expected to significantly lower delivery costs in Europe by integrating more efficient network solutions. By streamlining its European network, FedEx aims to shift its focus toward higher-margin business-to-business (B2B) shipments. Analysts also highlighted that ongoing cost-cutting initiatives and the potential spin-off of FedEx Freight are key drivers for performance through 2026. Overall, the move signals a robust effort by FedEx to enhance its cost structure and drive long-term shareholder value.