Analysts at JPMorgan Chase (JPM) have named FedEx (FDX) their top stock pick for the year ahead, forecasting a 30% gain for the shipping and logistics giant.
In a note to clients, JPMorgan said that the stock should be on the upswing in 2022 and identified an upcoming investor day as a key catalyst for the share price.
The past year has been difficult for FedEx shareholders, as the stock has fallen more than 5%. Rival shipping company United Parcel Service (UPS) has seen its stock jump 20% during 2021.
That divergence makes FedEx a potential catch-up trade if it shows operational improvement, according to JPMorgan’s analysis. “Valuation gap with UPS is nearly at all-time record levels,” the note said.
JPMorgan Chase has a price target of $312 U.S. per share on FedEx stock, which is 27% above where the shares ended trading yesterday (December 20).
