FDXF: A Pure-Play LTL Turnaround Story – Initiating Coverage with Outperform Rating

Research evidence excerpt

FDXF: A Pure-Play LTL Turnaround Story – Initiating Coverage with Outperform Rating

Airfreight & Surface Transportation

Trucking - Market Weight

FEDEX FREIGHT (FDXF) June 4, 2026

FDXF: A Pure-Play LTL Turnaround Story – Initiating Rating:

Coverage with Outperform Rating Outperform

Price:

$152.00

The Wolfe Byte Price Target:

We're launching coverage of FDX Freight with an Outperform rating following $180

% Upside:its spin from FDX earlier this week. We expect material EPS growth the next 18.4%

few years with company-specific pricing/margin opportunities and an improving

View FDXF Model

fundamental backdrop for all the LTLs. View Comp Table

Company Information

●Initiating Coverage of FDXF. We're launching coverage of FedEx Freight 52-Week Range $150 - $185

(FDXF) with an Outperform rating. While FDXF has materially lagged the Market Cap. (MM) $18,130

other LTLs from a pricing and margin standpoint the past several years, we Enterprise Value (MM) $25,895 Shares Out. (MM) 119.3

expect FDXF will increasingly re-focus on pricing and margin improvement as Avg. Value Traded (MM) $682.54

a standalone public company. In addition, underlying LTL fundamentals have SI% of Float NA

improved materially the past few months with the ISM inflection above 50,

rising TL spot rates and higher fuel prices. Thus, we expect material EPS growth 195190

off trough levels the next few years. 185180

●Pricing Over Volumes. Heading into the spin, FDXF has lagged peers on both 175170

tonnage and yields, and thus it reported by far the worst y/y margin trends 165 160

155 among the LTLs last quarter. But looking ahead, we expect that FDXF will

increasingly focus on pricing and yields as John Smith returns as President & 150145

CEO.