Citigroup lowered its price outlook for courier delivery company FedEx, citing headwinds from TNT integration and profit lag in freight.
Citigroup slashed price target on FedEx stock by $15 to $210 per share. Citi analyst Christian Wetherbee mentioned “slower International trends and ongoing profit headwinds from the TNT integration, as well as somewhat lower profit growth at Freight” as factors behind the target cut. FedEx acquired TNT for $4.8 billion in 2016.
Wetherbee also pared down his estimate for FedEx's third quarter earnings to $3.05 per share, well below the Street consensus of $3.28 per share. FedEx is expected to release the actual fourth quarter report on March 19.
FedEx has also seen some change of hands in management leadership in recent months. Last month, it was revealed that Raj Subramaniam would replace David Bronczek as president and CEO, but the company said that the change was not due to any dispute or anything related to operations. By the end of 2018, David Cunningham retired from the company as CEO.