11:12 AM EST, 11/13/2025 (MT Newswires) -- FedEx ( FDX ) is making progress on its network integration, with the company only seeing a "modest" peak season growth year-on-year, Morgan Stanley said in a Thursday note.

Morgan Stanley further said it was "encouraged" by the company's ability to improve margins despite volume softness and raised its earnings per share estimates for fiscal Q2 2026, and fiscal 2027 $4.15, $18.35 from $4.00, $18.00, respectively.

With FedEx ( FDX ) holding a small meeting with a sell-side group, Chief Executive Officer Raj Subramaniam is focused on a digital transformation, as the company adds artificial intelligence and supercomputing towards its data to improve sales, among others, Morgan Stanley said.

The firm reiterated its neutral rating and raised its price target to $285 from $270.

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