Will FedExs share price hit Bank of Americas bullish target?
F edExs [FDX] share price got a boost from Bank of America at the end of June. BoA analyst Ken Hoexter put the Memphis-based logistics company on its US1 top pick list, while Union Pacific got scratched from the list. Hoexters decision is a value play, noting that FedEx is one of the few large cap stocks in our coverage trading at a discount to its historical average.  Whats happening with FedExs share price  Investors seem to have taken notice of BoAs backing with FedExs share price ending last week up 2.3% to trade at $299.38. So far this year, FedExs share price has climbed circa 13% (as of 6 Julys close), hitting a high of around $315 at the back end of May. June saw the stock drop 7.5% and some might wonder whether there really is any more upside left - after all, over 12 months FedExs share price has climbed a mammoth 89%, driven by an upswing in e-commerce sales. Hoexter, however, reckons theres still plenty of mileage left in FedEx's share price, writing:  We see significant tailwinds for FDX, led by pricing gains, margin improvement (including TNT integration), continued e-commerce growth, and the return of B2B volumes.  We see significant tailwinds for FDX, led by pricing gains, margin improvement (including TNT integration), continued e-commerce growth, and the return of B2B volumes - BoA analyst Ken Hoexter  The analyst pinned a $372 price target on FedExs share price - one of the more bullish on Wall Street and representing a 27% upside on Tuesdays closing price. Strong quarterly numbers from FedEx  Hoexters upbeat assessment follows FedEx posting strong earnings for the fourth quarter of fiscal 2022 in June. Earnings per share came in at $5.01 on $22bn in revenue. Both figures topped analyst expectations and the previous years results. CNBCs Emily McCormick notes that FedExs sales grew by 30% over last year, the fastest rate since 2010, based on Bloomberg data. Driving growth was e-commerce and a return of business and international shipping. Operating margins for 2021 grew to 7.4% on an adjusted basis for 2021, well up on the 4.5% in 2020. Still, FedExs share price dropped post-earnings as the delivery giant said fuel and labour costs could rise, with capital spending forecasts raised to $7.2bn for 2022 compared to $5.7bn in 2021. Expectations are FedEx will deliver earnings of $21.26 a share for fiscal year 2022 on revenue of $91.02bn. For fiscal year 2023, earnings are pegged at $23.82 a share on earnings of $95.54bn. FedEx itself is guiding for earnings of between $20.5 and $21.5 for the fiscal year 2022. On CNBCs Fast Money Halftime report pundits mulled over what the impact of rising oil and gas prices would be on FedEx and rival UPS. Analyst Jon Najarian said that FedEx would have no problem passing these costs on to the consumer as demand for overseas goods coming into the US is incredibly strong right now due to the backlog caused by the Suez Canal and Port of Los Angeles closures. My problem with [FedEx] is that you dont really know what their strategy is - Stephanie Link  Stephanie Link, chief investment strategist and portfolio manager at Hightower, said on the show My problem with [FedEx] is that you dont really know what their strategy is, adding that it was unclear what synergies the acquisition of TNT added. Link, who had previously owned both stocks, said at the moment UPS was the one shed prefer, even if its forward P/E was a little bit rich. FedExs share price is trading at a forward 12.37X price to earnings multiple, cheaper than rival UPSs 18.29X multiple. UPS is also trading near its average analyst price target of $218.23. FedExs share price has an average $345.63 price target from the analysts tracking the stock on Yahoo Finance - hitting this would see a 17% upside on Tuesdays close.