FedEx Investment Update

Deutsche Bank maintains a Buy rating on FedEx (FDX), anticipating a strong Q4 earnings beat and a significant multi-year EPS growth trajectory driven by share buybacks and intrinsic valuation upside.

Key Takeaways

• 1.Expectation of a strong Q4 earnings beat and EPS growth through 2029.
• 2.Anticipated restart of share buybacks supported by Freight spin-out cash dividend.
• 3.FedEx remains intrinsically mispriced despite recent stock re-rating.

Table of Contents

• Valuation & Risks
• Explaining the relative lagging performance.
• So where should the market focus?
• FOCUS 1: A solid earnings outlook (with plenty opportunity to surpass expectations), near-term.
• FOCUS 2: Buybacks, near/medium-term.
• FOCUS 3: Value, longer-term.
• Appendix 1