FedEx falls on 2019 forecast cut, multiple brokerages lower price target

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FedEx falls on 2019 forecast cut, multiple brokerages lower price target
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Shares of FedEx Corp fell about 7 percent before the bell on Wednesday after the...

FILE PHOTO: A Federal Express delivery truck is shown in downtown Los Angeles, California, U.S., October 24, 2018. REUTERS/Mike Blake

The profit warning and weak quarterly results have resulted in a slew of price target cuts, with Morgan Stanley cutting to $148 from $156, as the full year forecast cut was much bigger than expected and implied a tough fourth quarter. J.P. Morgan expects “turbulence” in the near future and has downgraded the stock to “neutral” from “overweight”, cutting its price target to $202 from $227.

“Mix pressures and labor cost inflation are mounting faster than anticipated at Ground... We are increasingly concerned operating margins in percent terms will be pressured even if Ground can lower costs fast enough to grow operating profit in dollars,” J.P. Morgan analyst Brian Ossenbeck said in a note.

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