FedEx (FDX) to Spin Off Freight Business on June 1, Expected Valuation Boost
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Spin-Off Announcement: FedEx (FDX) has set June 1 for the spin-off of its freight business, which currently accounts for nearly 25% of the company's operating income, potentially enhancing its valuation.
- Leadership Team: The new FedEx Freight entity will be led by CEO John Smith, with R. Brad Martin as chairman, and the board will include executives from Dollar Tree and Lowe's, indicating strong leadership.
- Investor Day Plans: FedEx Freight is scheduled to hold an investor day next spring to outline its strategies and how it plans to close the gap with industry leader Old Dominion Freight Line in terms of service levels and operating leverage.
- Market Expectations: While revenue projections for fiscal year 2026 are modest, analysts believe the spin-off could unlock long-term shareholder value, making the new entity an attractive acquisition target or accelerating sector consolidation.
Analyst Views on ARCB
Wall Street analysts forecast ARCB stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARCB is 82.33 USD with a low forecast of 64.00 USD and a high forecast of 130.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
4 Buy
5 Hold
0 Sell
Moderate Buy
Current: 91.490
Low
64.00
Averages
82.33
High
130.00
Current: 91.490
Low
64.00
Averages
82.33
High
130.00
About ARCB
ArcBest Corporation is a logistics company. It leverages technology and a full suite of solutions to meet its customers’ supply chain needs. Its segments include Asset-Based, which consists of ABF Freight System, Inc. and certain other subsidiaries, and Asset-Light, which includes MoLo Solutions, LLC (MoLo), Panther, and certain other subsidiaries. The Asset-Based segment provides less-than-truckload (LTL) services through ABF Freight’s motor carrier operations. Its Asset-Based segment offers transportation of general commodities through standard, time-critical, and LTL services. The Asset-Light segment includes the ground expedite services of Panther; its truckload operations, including the truckload brokerage services of MoLo; household goods moving services under the U-Pack brand and its managed transportation solutions. Its truckload and dedicated services provide third-party transportation brokerage services by sourcing various capacity solutions including dry van over-the-road.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
