Deutsche Bank upgrades FedEx, says a big quarter could help drive stock higher

A FedEx worker unloads packages from his delivery truck on March 31, 2020 in Washington, DC.
Drew Angerer | Getty Images News

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FedEx is poised for a big quarter that could help propel its shares sharply higher, according to Deutsche Bank. 

The bank upgraded the stock to buy from hold, bringing FedEx to the same rating that Deutsche has for rival UPS. The stocks have been praised on Wall Street in recent weeks ahead of a holiday shipping season and the distribution of a potential coronavirus vaccine.

"We see upcoming results for both companies as having potential to exhibit very strong pricing power, the benefits of which are likely still being underappreciated," Deutsche Bank said in a note.