The stock is down -1.10% to $137.02 in pre-market trade
The firm said that while "shares are up nearly 50% in the last 12 months driven by a flurry of excitement surrounding the company's profit improvement plan, a historical share buyback and high profile shareholder turnover, underlying the hype remains a company delivering stagnant profitability and constant discussion of future improvement. "
"With a culture and incentive structure aligned to drive near-term growth at the expense of capital returns, we believe...a transformation at FedEx will take much longer to achieve than we initially hoped," the note said.
Separately, heStreet Ratings team rates FEDEX CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FEDEX CORP (FDX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."