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FedEx rating cut at Bernstein on execution risk

The article from MSN Money discusses a downgrade of FedEx Corporation's stock by Bernstein analyst David Vernon, who reduced the rating from "outperform" to "market perform" and lowered the price target from $288 to $265. This adjustment reflects concerns over execution risks at FedEx, particularly in light of the company's recent earnings report which showed a revenue decline of 3% year-over-year to $21.7 billion, despite beating earnings expectations. Vernon highlighted that while FedEx has made progress in cost-cutting, the company's ability to manage costs effectively in the future remains uncertain, especially with ongoing challenges like labor negotiations and potential economic downturns. The analyst also pointed out that FedEx's stock has underperformed compared to its competitor UPS, which has seen a 10% increase in stock value over the same period.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/top-stocks/fedex-rating-cut-at-bernstein-on-execution-risk/ar-AA1vbQkE ]