FedEx Corp (NYSE:FDX, XETRA:FDX)’s planned investment in InPost announced this week could help lower European delivery costs and sharpen the company’s focus on higher-margin business-to-business shipments, Bank of America analysts believe.
The firm reiterated its ‘Buy’ rating and raised their price target on the stock to $414 from $408 following the announcement.
Shares of FexEd traded hands at $369 on Wednesday afternoon, up almost 28% in the year to date.
The analysts wrote in a note that FedEx “remains one of our top Transport picks in 2026,” citing network integration, cost-cutting initiatives, and upcoming strategic moves, including the planned spin-off of FedEx Freight, alongside potential earnings momentum from the InPost transaction.
FedEx is acquiring a 37% non-controlling stake in European parcel delivery firm InPost for about $2.6 billion as part of a $9.2 billion consortium-led deal. The transaction is expected to close in the second half of 2026, subject to customary approvals, with FedEx targeting earnings per share accretion in the first year after closing.
InPost operates a network of roughly 61,000 automated parcel lockers across Europe and provides digital services for e-commerce merchants and consumers.
Bank of America noted that a follow-on commercial agreement is expected to lower Europe B2C cost to serve by leveraging InPost’s dense locker network, while allowing FedEx to focus on its higher-margin core B2B deliveries.
The investor consortium includes Advent International with a 37% stake, A&R Investments with 16%, and PPF Group with 10%. InPost will continue operating as a standalone company under its existing management team led by CEO Rafał Brzoska.
The firm noted that FedEx remains one of its top transportation picks in 2026. “We see momentum with its network integration, cost cutting strategy, profitable share gains, yield discipline, upcoming June 1, 2026 spin of FedEx Freight, and benefits from the potential end of the nearly 4 year freight recession,” they wrote.
Bank of America increased its fiscal 2027 and 2028 earnings estimates for FedEx by 1% and 3% to $21.75 and $24.60 per share, respectively, reflecting anticipated accretion from the investment.