Bank of America Securities published a Research Report indicating that FedEx (FDX.US) announced plans to spin off its freight business into an independent listing within the next 18 months, driving the after-hours share price up by 9%. The company's CEO, Raj Subramaniam, emphasized that the spin-off will help enhance FedEx's strategic development, operational, and financial execution capabilities, thereby unlocking significant value potential.

The bank forecasts that the associated value will reach $348 per share, which will release value potential. As expected, FedEx management lowered the fiscal year 2025 earnings per share guidance from between $20 and $21 to between $19 and $20, while Bank of America's forecast was raised from $19.15 to $19.35. Bank of America reaffirmed its "Buy" rating on the company, raising the Target Price from $325 to $348, corresponding to approximately 15 times the earnings per share forecast for fiscal year 2026.