FedEx Freight will complete its spinoff from FedEx Corp on Monday and begin trading on the New York Stock Exchange under the symbol "FDXF."
FedEx Freight is the largest provider of less-than-truckload services in the U.S. Its debut as an independent company comes at a time when freight rates could be emerging from a four-year slump.
BMO Capital Markets analyst Fadi Chamoun said, "As a newly separated, pure-play entity, the company offers a sizeable margin improvement opportunity, though this is highly dependent on execution."
J.P. Morgan analyst Brian Ossenbeck values FedEx Freight at a lower multiple compared to its rivals. The company expects average revenue growth of 4% to 6% in the medium term and core profit growth of 10% to 12%.
