Shipping Giants Urge EU to Implement New Duty Rules
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Newsfilter
- Call for New Tax Regime: Major shipping companies DHL, FedEx, and UPS have jointly urged EU finance ministers to adopt a phased approach to new duties on low-value packages, emphasizing the need for a smooth transition.
- Flat Rate Proposal: The letter suggests implementing a flat-rate duty of EUR 3 per item starting July 1, 2026, aimed at simplifying tax handling for low-value packages and reducing operational costs.
- Delay Complex Rules: The companies advocate for deferring the implementation of more complex tax regulations until they are legally clear and operationally viable, thereby avoiding unnecessary disruptions to their operations.
- Industry Implications: This initiative highlights the shipping industry's concerns regarding the new tax regime, which, if implemented effectively, could enhance industry efficiency and promote the growth of cross-border e-commerce.
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Analyst Views on FDX
Wall Street analysts forecast FDX stock price to fall
20 Analyst Rating
13 Buy
6 Hold
1 Sell
Moderate Buy
Current: 400.000
Low
210.00
Averages
315.05
High
365.00
Current: 400.000
Low
210.00
Averages
315.05
High
365.00
About FDX
FedEx Corporation provides customers and businesses with a portfolio of transportation, e-commerce, and business services. The Company offers integrated business solutions utilizing its flexible and efficient global network. Its segments include Federal Express, FedEx Freight, and Corporate, other, and eliminations. Federal Express segment includes express transportation, small-package ground delivery, and freight transportation, and it also operates combined sales, marketing, administrative, and information-technology functions in shared service operations for United States customers. FedEx Freight segment includes FedEx Freight (LTL freight transportation) and FedEx Custom Critical (time-critical transportation). Corporate, other, and elimination segments include FedEx Dataworks, Inc. (FedEx Dataworks), FedEx Office and Print Services, Inc. (FedEx Office), and FedEx Logistics, Inc. (FedEx Logistics). FedEx Logistics offers customs brokerage, specialty transportation, and others.
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.
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See More
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- EBITDA Multiple Increase: The analyst raised FedEx's FY27 EBITDA multiple to 14x, believing the spin-off will unlock substantial value by addressing long-standing limitations in customer-facing technology and commercial capabilities that have historically impacted service and yields.
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See More
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- Micron's Continued Ascent: Micron's stock rose another 7% in premarket trading, achieving a remarkable increase from $500 billion to $1 trillion in just 48 days, the fastest on record, highlighting the ongoing shortage and insatiable demand for memory chips, suggesting significant future growth potential.
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See More
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- Dollar General Downgrade: Deutsche Bank downgraded Dollar General from buy to hold, citing challenges in its customer base and the widening gap in the K-shaped economy, which may limit same-store sales upside, reflecting a cautious outlook on the company.
- Ecolab Upgrade: UBS upgraded Ecolab from neutral to buy and raised its price target to $325, demonstrating strong demand and positive performance expectations for the chemicals company amid a favorable market environment.
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See More
FedEx Stock Expected to Rise After Spin-Off of Freight Business
- Price Target Upgrade: JPMorgan upgraded FedEx's rating from neutral to overweight and raised its price target from $432 to $460, indicating a 15% upside from Tuesday's close, reflecting strong market confidence in the company's future performance.
- Spin-Off Plan: The company's board approved the spin-off of its FedEx Freight unit into an independent publicly traded firm, expected to take effect on Monday, which is anticipated to enhance FedEx's operational momentum and free cash flow profile, supporting its path to 2029 targets.
- Improving Market Sentiment: Analysts noted that sentiment on FDX has steadily improved over the past several quarters as management continues to deliver on transformation initiatives, with hedge funds showing increased preference for the stock ahead of the spin-off, indicating optimistic investor expectations for the company's future.
- Analyst Consensus: According to LSEG data, of the 29 analysts covering FedEx, 17 have a buy or strong buy rating, suggesting a generally positive outlook on the stock, which has risen 38% since the beginning of the year.
See More
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- Analyst Expectations: The majority of the 46 analysts covering Snowflake maintain buy or overweight ratings with a target price of $231.38, while 40 analysts for Salesforce share a similar outlook with a target of $254.43, suggesting ongoing confidence in both companies' future performance.
- Airline Stock Recovery: Airline stocks have performed well over the past month, with Delta Air Lines up about 16% and American Airlines up 22%, reflecting optimistic market sentiment ahead of the summer travel season, despite overall stock prices remaining below January highs.
- Impact of FedEx Spin-off: The upcoming listing of FedEx Freight marks increased Wall Street interest in less-than-truckload companies, with FedEx shares surging 45% over the past six months, indicating market recognition of its growth potential.
See More
