01:12 PM EST, 12/20/2024 (MT Newswires) -- FedEx's ( FDX ) plans to spin off its FedEx Freight business will result in the biggest pure-play public North American less-than-truckload carrier, unlocking value potential, BofA Securities said in a note Friday.

"CEO Raj Subramaniam highlighted potential for significant value unlock that will enable enhanced strategic, operational, and financial execution," BofA said. "Our sum-of-the-parts value suggests significant value potential at $348/sh."

BofA said it sees momentum in structural cost takeout from the separation.

BofA raised its price objective on FedEx ( FDX ) to $348 from $325 and kept its buy rating.

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