FedEx To Take Revenue Hit From USPS Contract Loss; Margins May Improve

/ / Industrials /

FedEx’s loss of its contract with the U.S. Postal Service will likely be a roughly $1.5 billion hit to revenue, BMO Capital Markets analysts say in a research note. However, the loss of the contract will likely lead to improved margins once costs associated with the USPS deal are phased out, the analysts say. FedEx “will be able to redesign its air network schedule in a manner that removes significant cost pressures over time.” FedEx shares fall 3.1%.

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CFRA Keeps Hold Opinion On Shares Of 3m Company

/ / Industrials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: MMM shares are settling lower today following the spin-off of Solventum (SOLV), MMM’s healthcare business. Holders of MMM stock received one share of SOLV for every four shares of MMM held at the close of March 18, 2024. MMM retains 20% ownership of SOLV, which will be monetized over the next five years. Shares are also reacting to today’s news of MMM receiving final court approval of its PFAS settlement with public water suppliers (PWS), totaling $10.3B, payable over 13 years. Payments under the agreement are scheduled to begin in Q3 of 2024. We believe MMM will be better positioned for recovery with a new CEO, a more focused operating model, and reduced litigation overhang. However, we view risks as still being elevated in the near term.

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CFRA Upgrades Opinion On Shares Of Doordash, Inc To Buy From Hold

/ / Technology /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target to $158 from $110 on a P/E of 40x our 2025 EPS view, above peers, reflecting financial strength (net cash of $4B) and higher growth. We lift our 2024 EPS to $2.75 from $2.71 and 2025’s to $3.96 from $3.54. We upgrade our view on DASH due to our increased conviction in the company’s accelerating growth trajectory across almost all of its business segments, driven by stickiness of its delivery ecosystem. We remain positive given high growth potential from subscription services (+18M members in 2023 vs. 15M in 2022) and expansion into grocery/retail/international boosting Marketplace GOV and orders (+22% GOV and +23% orders in Q4). We also see a positive secular trend emerging within the gig economy, thanks to ample supply of

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CFRA Keeps Buy Opinion On Shares Of Airbnb, Inc.

/ / Consumer Discretionary /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target to $188 from $168 on an above-peer P/E of 35x our 2025 EPS. We keep our 2024 EPS at $4.61 and 2025’s at $5.36. We have a positive outlook on ABNB due to its strong network effect advantage and widespread customer adoption. We see 12% revenue growth in 2024, driven by strong supply growth (+18% ex-China in Q4), higher take rates, and international expansion. We like ABNB’s positive EBITDA margins (33%, +6%-pts in Q4) and we believe persistent double-digit top-line growth can continue, driven by further penetration into markets like Asia (especially Korea), Germany, and Brazil, where adoption is early. We also expect ABNB to benefit from a resurgence in travel demand within China as Covid-19 restrictions ease, unlocking pent-up demand throughout

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