Why Jim Cramer Says Newly Public FedEx Freight Stock Could Be a ‘True Winner’

Under the terms of the separation, FedEx shareholders received one share of FedEx Freight common stock for every two shares of FedEx owned as of the May 15, 2026, record date. FedEx distributed roughly 80.1% of the new company to shareholders while retaining a 19.9% stake that it plans to monetize over time.

The market debut generated substantial investor attention as Wall Street increasingly views standalone LTL trucking companies as deserving higher valuation multiples than diversified transportation conglomerates. However, the first trading session was volatile. FedEx Freight shares surged as high as $166.90 on June 1, before reversing sharply and ultimately closing at $150.01. The stock surged by 2.55% on June 2.

In addition, FedEx Freight enters the public markets with ambitious medium-term financial targets. Management expects fiscal 2026 revenue of $8.7 billion and adjusted operating income of $1.1 billion while targeting annual revenue growth of 4% to 6% and core profit growth of 10% to 12% over the medium term. The company is also aiming for operating margins near 12%, supported by improving freight pricing conditions, automation investments, and network optimization initiatives.

Also, industry conditions may provide a favorable backdrop for the newly independent trucking giant. Freight markets have recently begun tightening as weaker carriers exit the industry and capacity becomes more constrained, trends that could support stronger pricing and profitability across the LTL sector.

What Do Analysts Expect for FedEx Freight Stock?

Analysts across Wall Street are largely viewing FedEx Freight’s launch as one of the transportation industry’s most significant spinoffs in years, as the separation from FedEx allows the business to be evaluated more like a dedicated less-than-truckload carrier rather than part of a diversified logistics giant.

Ahead of the spinoff, JPMorgan (JPM) highlighted that FedEx Freight may initially trade at a modest discount to established LTL rivals because of near-term transition uncertainty, but could see its valuation improve as the company delivers on technology investments and commercial growth strategies.

Meanwhile, BMO Capital Markets emphasized that strong execution and the ability to preserve premium service standards will be essential for FedEx Freight to command valuation multiples in line with top players in the sector.

Additionally, Truist Securities initiated coverage on FedEx Freight Holding Company with a “Hold” rating and a $155 price target, saying it wants clearer evidence that the newly independent trucking company can improve profitability and move closer to historical peak margin levels before turning more bullish.

On the other hand, BofA Securities initiated coverage on FedEx Freight Holding Company with a “Buy” rating and a $185 price target, highlighting the company’s dominant position as the largest less-than-truckload carrier. Overall, FDXF has a consensus “Moderate Buy” rating as of now, with both the average and Street-high price targets pointing to a potential 22.88% upside from here.

On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com