UPDATE: Citigroup Raises PT on FedEx on Further Upside Potential

In a report published Tuesday, Citigroup analyst Christian Wetherbee reiterated a Buy rating on FedEx Corporation (NYSE: FDX), and raised the price target from $140.00 to $170.00.

In the report, Citigroup noted, “FedEx shares are up 20% in the three months since it reported F1Q14 results. That said, we believe further upside remains, as the current investor base appears to be playing for a meaningful improvement in profitability, led by cost efforts underway at the company's Express segment. Sentiment is firming around FedEx's ability to produce profit improvement and coupled with accretion from the buyback and help from improving volumes, $10 of earnings power should enter the discussion for F15. Using its historical multiple of ~17x, we believe the upside case for FedEx shares is $170. As such, we are increasing our target to $170 and reiterate our Buy.”

FedEx Corporation closed on Monday at $139.81.