Benzinga | Sep 9, 2021 04:57PM EDT

JPMorgan Sees 34% Upside In FedEx After Lowering Price Target

* FedEx Corporation's (NYSE:FDX) price target was lowered to $346 (implying an upside of 33.82%) from $366, with an Overweight rating maintained on the stock by JPMorgan analyst Brian Ossenbeck.

* Ossenbeck recommends staying on the sidelines into the FedEx fiscal Q1 earnings release on September 21. He says that while the significant underperformance of shares versus the S&P 500 Index and peer UPS (NYSE:UPS) since late May combined with negative sentiment is "ingredients for a relief rally," he does not see a clear catalyst until fiscal Q3.

* Additionally, at that point, the peak season surcharges will be in full effect just as costs related to the holiday surge flatten out, the analyst wrote.

* Price Action: FDX shares closed lower by 0.69% at $259.22 on Thursday.