China exposure boosts FedEx shares: Barron's
NEW YORK (Reuters) - FedEx Corp (FDX.N) shares, which have more than doubled since a low in March, may climb further given the delivery company's growing exposure to overseas markets such as China, Barron's reported on Sunday.
FedEx shares benefited from cost cutting over the last 18 months and, as the economic recovery revives the company's transportation business, the shares could get a boost of more than 20 percent to trade as high as $100, the newspaper reported.
The company is well-positioned to make the most of the economic recovery, and its considerable operating leverage means that when its revenue starts to rise, costs won't rise as quickly, according to the newspaper.
FedEx, which reported a profit of $3.67 a share for its most recent fiscal year, could earn $7 to $9 a share as markets recover, Barron's said, citing Rob Pickels, a senior analyst at Manning & Napier.
FedEx shares closed at $81.97 on Friday on the New York Stock Exchange.
(Reporting by Elinor Comlay; Editing by Leslie Adler)
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