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Pro Analysis

Buy FedEx on acquisition cost savings and overplayed Amazon risk, Deutsche Bank says

A FedEx cargo plane at the company's distribution hub at Los Angeles International Airport.
Patrick T. Fallon | Bloomberg | Getty Images
A FedEx cargo plane at the company's distribution hub at Los Angeles International Airport.

Deutsche Bank initiated coverage of FedEx with a buy rating due to the prospect of better earnings results from sales growth and cost cutting in the coming years.

"We see .. upside potential in FDX shares as the company realizes the last remaining benefits of its profit improvement plan, synergies from its recent TNT Express acquisition take hold, and Ground investments begin to pay-off," analyst Amit Mehrotra wrote in a note to clients Tuesday.