JPMorgan Downgrades FedEx Stock Amid Freight Sector Headwinds

JPMorgan analyst Brian Ossenbeck cut FedEx (FDX) to Hold from Buy, slashing the price target to $274 as the freight business grapples with soft demand and overcapacity. Channel checks revealed deteriorating fundamentals in the less-than-truckload sector, with FDX shares dropping 2% pre-market.

The downgrade reflects mounting concerns about FedEx's ability to meet full-year EPS targets. Ossenbeck notes guidance assumes a freight recovery that now appears increasingly unlikely. Operational challenges and separation costs for the Freight segment further cloud the outlook.

Year-to-date declines of 14% highlight broader pressures including tariff impacts, elimination of the $800 de minimis exemption, and fierce competition. The analyst's industry discussions suggest these headwinds may persist through the coming quarters.