June 10, 2019 / 5:25 AM / 2 months ago

BUZZ-FedEx: Baird cuts PT on risks to FY20 EPS

** Brokerage Baird cuts PT of FedEx Corp to $180 from $190 on risks to FY 2020 EPS due to weakness in volumes and incremental costs

** Broker says PT cut is unrelated to FedEx’s Friday decision to end Amazon contract for FedEx Express plan service

** Adds that Baird believes the Amazon announcement is more strategically symbolic than material from financial standpoint as the online retailer accounts for a less than 1.3% of FDX’s rev in 2018

** The slight trim in PT caused by continued weakness in global AF volumes, incremental costs, in part within its Ground segment - Baird

** FDX’s Ground segment recently announced decision to expand residential delivery service rollout to 7-days-per-week year-round

** FDX shares down ~2% this year vs rival UPS’s ~0.7% gain and AMZN’s 20% rise YTD (Reporting by Yadarisa Shabong in Bengaluru)

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