Stifel reiterates FedEx Freight stock rating at Hold, $129 target

Stifel has kept its Hold rating on FedEx Freight shares, with a price target of $129.00. The stock is currently trading at $127.57, down 27% over the past six months, but FedEx Freight maintains a $16.4 billion market capitalization. The company's first standalone report highlights improving shipment trends and stronger contract renewals, which Stifel believes will lead to better pricing realization in 2027.

After the split, FedEx Freight's sales team will focus on new accounts, higher-value verticals, and small-to-medium businesses. Management provided a preliminary outlook for 2027, with earnings improvement still heavily dependent on fuel. Analysts expect earnings of $5.14 per share and revenue growth of around 10% in fiscal 2027.

FedEx Freight remains profitable over the past year, but the company is still absorbing significant costs related to compensation, technology investment, and transition. Stifel views this report as a constructive sign for the future, but notes that more evidence is needed to assess sustained base yield improvement and cost transition cadence. The research firm remains cautious, maintaining its Hold rating on the stock.