FedEx Stock Attracts Slew Of Price Target Cuts Post Disappointing Outlook Revision, Loop Capital Names It ‘Really Bad Recession Stock’

Logistics major FedEx Corp (FDX) received several price target cuts after the company slashed its 2025 outlook and reported downbeat third-quarter earnings.

According to TheFly, Loop Capital downgraded the stock to ‘Sell’ from ‘Hold’ and reduced the price target to $221 from $283.

Loop noted that as economists ratchet up U.S. recession risk, it sees FedEx as a "really bad recession stock" given that thin Express margins amplify the earnings hit whenever there's pressure on the top line.

FedEx shares fell 11% on Friday morning, headed toward its worst single-day performance since September 2024, according to KoyFin data.

Meanwhile, Wells Fargo lowered its price target to $260 from $275 while keeping an ‘Equal Weight’ rating on the shares.

FedEx projected adjusted earnings of $18 to $18.60 per share for the fiscal year, compared with $19 to $20 per share projected earlier.

The logistics player also said it expects 2025 revenue to be flat to slightly down year-over-year, compared to the prior forecast of flat revenue.

FedEx Chief Financial Officer John Dietrich said the company’s revised earnings outlook reflects continued weakness and uncertainty in the U.S. industrial economy, constraining demand for business-to-business services.

Bank of America also lowered its price target on the stock to $272 from $295 while keeping a ‘Buy’ rating on the shares.

According to TheFly, the brokerage noted that the momentum in structural cost takeout and value unlock from its upcoming spin of FedEx Freight is balanced by macro uncertainty, inflationary pressure, and tariff overhang.

BMO Capital also lowered its price target on FedEx to $275 from $330 while keeping a ‘Market Perform’ rating on the shares.

The brokerage said that although structural cost reductions should support positive operating leverage once demand recovers, visibility remains limited.

On Stocktwits, retail sentiment plunged into the ‘extremely bearish’ territory (8/100) to hit a year-low level. The move was accompanied by significant retail chatter.

FDX’s Sentiment Meter and Message Volume as of 9:38 a.m. ET on March 21, 2025 | Source: Stocktwits

Stocktwits user messages, however, indicated a mixed take on the stock.

One user sees the current dip as a buying opportunity.

Another expressed a bearish take, given the lowered outlook.

FDX shares have lost over 20% in 2025 and are down over 17% in the past 12 months.

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