FedEx Corp.'s stock rose 1% in premarket trade Friday, after Credit Suisse raised its rating and price target, citing the improving prospects of the package-delivery service's ground business. Analyst Allison Landry upgraded FedEx to outperform from neutral, and bumped up her stock price target to $203 from $177. That implies a 16% rise from Thursday's closing price of $174.60. "[FedEx] has shifted its capex focus to increasing capacity in its U.S. Ground network, which is higher margin and less capital intensive than Express," Landry wrote in a note to clients. "Should [FedEx] Ground continue to see outsized growth relative to Express, consolidated margins and [return on invested capital] should improve." Last month, Landry downgraded rival United Parcel Service's stock to neutral from outperform. FedEx's stock has lost 0.3% in the past three months, while UPS has dropped 4.8% and the S&P 500 has gained 1.8%.
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