Goldman Sachs initiated coverage of FedEx Freight Holding with a Buy rating and a $186 price target, implying roughly 23% upside from current levels. The brokerage cited the newly independent less-than-truckload carrier's potential to improve profitability, pricing power and cash generation following its spin-off from FedEx. Goldman expects the company to improve its operating ratio toward a medium-term target of 85%, supported by pricing gains, productivity initiatives, technology investments and stronger freight volumes. The firm forecasts revenue growth of 4% to 6% annually through 2029 and sees earnings per share rising to $4.65 in fiscal 2027, $5.80 in 2028 and $6.95 in 2029. Goldman also highlighted FedEx Freight's scale advantages, noting its nationwide network, large terminal footprint and ability to generate at least $1 billion in free cash flow over the medium term, with management expected to prioritize debt reduction before introducing dividends in late 2026 or early 2027 and share repurchases in 2027.
FedEx Freight Holding Company, Inc.Goldman Sachs initiated coverage with a Buy rating and $186 price target, implying 23% upside.
FedEx Corporation
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