Benzinga | Sep 17, 2021 09:04AM EDT

UBS Lowers FedEx's Price Target, Keeps Buy Rating

* UBS analyst Thomas Wadewitz lowered FedEx Corp's (NYSE:FDX) price target to $380 (implying an upside of 47.2%) from $397 and maintained a Buy rating on the shares.

* Wadewitz says cost pressures expected to show up in Q1 results and related to ground hub ramp up and incentive comps are likely to be transitional, but headwinds from a tight labor market could persist.

* Recently, FedEx and salesforce.com, inc. (NYSE:CRM) announced a new multi-year partnership to deliver fast and easy shipping, end-to-end e-commerce, and supply chain management.

* Price Action: FDX shares are trading higher by 0.24% at $259 during the premarket session on Friday.