1139 ET - FedEx's planned spinoff of its freight trucking division is set to create another high-quality, publicly traded pure play in the less-than-truckload, or LTL, shipping sector, Raymond James analysts say in a research note. They think the separation would be positive for both the new company and the LTL industry broadly, as the newly sovereign entity could focus on value-enhancing strategies without the distraction of being part of FedEx's broader portfolio, the analysts say. The analysts say the spun-off freight company could be a "sleeping giant." The freight division's service metrics have fallen in recent years, so reinvigorating it as a new company and focusing on improving service could make the business even more formidable, the analysts say. (dean.seal@wsj.com)
(END) Dow Jones Newswires
December 20, 2024 11:39 ET (16:39 GMT)
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