FedEx downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded FedEx to Underweight from Equal Weight with a price target of $200, down from $215, following the earnings report. The company will need to earn almost $17 in earnings per share in the next three quarters to hit guidance “despite several market and idiosyncratic headwinds ahead,” the analyst tells investors in a research note. The firm says the magnitude of the fiscal Q1 shortfall, and the large gap between its forecasts and the recovery trajectory necessary to meet management’s guidance, suggests greater earnings risk over a longer horizon than it had envisioned.