Fedex: Citigroup Maintains Buy Rating, PT Down to $275 from $278

Fedex: Citigroup Maintains Buy Rating, PT Down to $275 from $278

Title: FedEx: Citigroup Maintains Buy Rating, PT Down to $275 from $278

July 02, 2025

Citigroup has maintained its Buy rating on FedEx (FDX) shares while lowering the price target from $278 to $275. This adjustment reflects recent tariff uncertainties and broader macroeconomic conditions [2].

The financial services giant, which met with FedEx management, acknowledged the challenges posed by these factors but remains bullish on the company's long-term prospects. The revised price target underscores a cautious yet optimistic outlook on FedEx's ability to navigate the volatile market environment.

FedEx's strategic investments in AI-driven logistics and automation have positioned it to address post-free-trade era challenges. The company's focus on sustainability and cost efficiency has been a key driver of its resilience. By 2025, FedEx plans to deploy AI-powered sorting robots and real-time delivery tools, aiming to enhance efficiency and save $4 billion through strategic restructuring [1].

FedEx's commitment to sustainability, including a 50% electrified delivery fleet by 2025, aligns with global environmental, social, and governance (ESG) trends. These initiatives not only reduce operational costs but also position FedEx as a leader in sustainable logistics—a sector projected to grow at a 25.9% CAGR through 2034 [1].

Despite the recent price target adjustment, Citigroup's confidence in FedEx's long-term value is evident. The company's AI-driven tools and end-to-end visibility platform offer competitive advantages in the logistics industry. These innovations are crucial in a sector where traditional carriers face increasing competition from e-commerce giants like Amazon and Walmart.

For investors, FedEx's stock appears undervalued relative to its peers, particularly given its projected margin expansion from AI-driven efficiency gains. The company's strategic shift towards automation and AI-driven logistics has fortified its resilience against global trade uncertainties.

References:
[1] https://www.ainvest.com/news/fedex-strategic-shift-automation-ai-driven-logistics-assessing-fdx-resilience-post-free-trade-era-position-ai-infrastructure-race-2508/
[2] https://www.tipranks.com/news/the-fly/fedex-price-target-lowered-to-275-from-278-at-citi-thefly