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Bank of America has upgraded FedEx from Neutral to Buy, citing the company's positioning to benefit from cost reductions, network consolidation, and a potential recovery after a nearly four-year slowdown in the freight sector. Analyst Ken Hoexter noted this upgrade is part of a broader strategy shift towards cyclical transportation stocks through 2026.

Support for this view includes the removal of capacity in the trucking sector and the anticipated end of the freight recession from 2022 to 2025. Improved demand is expected due to lower interest rates, infrastructure spending, and investments in data centers and energy procurement.

The price target for FedEx has been raised from $315 to $365, with the company identified as one of BofA's top picks for 2026, driven by its cost reduction strategy and the planned $1 billion Network 2.0 savings initiative in fiscal year 2026. The upcoming spin-off of FedEx Freight in June 2026 is also seen as a key catalyst.