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FedEx (FDX) - Get Free Report   dipped Wednesday after shares of the world's largest package delivery company were cut to market perform from outperform by analysts at Bernstein.

Shares fell 0.14% to $138.20 after Bernstein set its price target at $153, which implies an 11% increase from FedEx's closing price Tuesday of $138.39. The average Wall Street price target for FedEx is $172.72, according to Bloomberg.

Analyst David Vernon, in a research note, wrote that it was "reasonable to think that results could get worse before they get better" at FedEx. He cut his price target to $153 from $201. The analyst said there was "relatively more upside" at rival United Parcel Service  (UPS) - Get Free Report .

Vernon said he had "limited confidence that the idiosyncratic issues plaguing the company will be resolved" over the next 12 months.

Analysts have decreased their consensus one-year target price for the stock by 7.5% in the past three months. Targets range from $120 to $360, according to Bloomberg.

The shipping giant fell sharply in mid-September after warning that full-year profit likely would disappoint as the U.S.-China trade war slashes demand and the loss of a major contract with (AMZN) - Get Free Report  eats into its bottom line.

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FedEx reported fiscal first-quarter adjusted earnings of $3.05 a share, down 11.8% from the same period last year and 10 cents shy of analysts' forecasts. Revenue was largely flat from a year earlier at $17.04 billion and matched estimates.

Looking into its 2020 fiscal year, which ends in May, FedEx said it sees earnings in the region of $11 to $13 a share, well below analysts' estimates of $14.69.

FedEx shares have declined 14.2% year to date.

The company announced an agreement Tuesday in which customers of Walgreens Boots Alliance (WBA) - Get Free Report  can drop off returns at Walgreens stores nationwide.