Monster rally in FedEx could continue as global business gets a boost from TNT, analyst says

A FedEx employee makes deliveries in New York City.
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Investors should buy FedEx shares because its international business will get a boost from its 2016 takeover of TNT Express, according to Raymond James, which upgraded the shipping company to outperform from market perform.

"We continue to believe that adding TNT into FDX's portfolio will prove a game changer for FDX as TNT should improve FDX's European operations providing not only cost synergies (via density), but also revenue opportunities over time," analyst Patrick Tyler Brown wrote in a note to clients Monday.

FedEx acquired European competitor TNT Express in May 2016. The stock is already up more than 40 percent in the last 12 months.

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