Shares of FedEx are a "show me story" until the company can prove it can deliver on their turn-around strategy, according to Berenberg. Analyst William Fitzalan Howard downgraded shares of FedEx to hold from buy, saying in a Thursday note that the company is attempting to improve just as earnings risks and inflationary pressures rise. "FedEx shares have had something of a reprieve in the past few weeks, after the company changed its CEO and the apparent influence of an activist investor prompted some strategy changes. This raised hopes that the capital markets day (CMD) this week might mark a break from the business's chequered reputation of the past few years," Howard wrote. "However, with near-term earnings risks now mounting and mixed prospects for the execution of the strategic review, we think the shares may pause for breath until the macroeconomic outlook becomes clearer." Berenberg also cut its price target to $275 from $330, a near 17% cut. The new price target is about 20% above where shares closed Thursday. The firm expressed skepticism that management will meet its targets and its guidance for fiscal year 2023, as costs rise, and an initial boost during the pandemic fades. "Given the company's mixed record on execution, we think investors are unlikely to give management the benefit of the doubt – the improvement trajectory will remain a 'show-me story' for some time," read the note. Shares of FedEx dipped more than 1% in Friday premarket trading. —CNBC's Michael Bloom contributed to this report.