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Major bank rating丨Bank of America: Raises FedEx Target Price to $348, splitting helps to release value.
Bank of America Securities published a Research Report indicating that FedEx announced it will spin off its Freight Business into an independent listing within the next 18 months, driving a 9% increase in after-hours stock price. The company's CEO Raj Subramaniam emphasized that the spin-off will help enhance FedEx's Global Strategy, operational and financial capabilities, thereby unlocking substantial value potential. The firm predicts the related value to reach $348 per share, which will unlock value potential. As expected, FedEx management lowered the earnings per share guidance for fiscal year 2025 from between $20 and $21 to between $19 and $20, while comparing with Bank of America's prediction that was raised to $19.15.
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