By Christiana Sciaudone
Investing.com -- We may be stuck at home, but that's not stopping our shopping habits.
FedEx (NYSE:FDX) shares popped almost 7% to their highest in two years after Bernstein raised it to a buy-equivalent.
Bernstein expects strong results, and pushed it from a market perform to an outperform.
"E-commerce parcel pricing is expected to remain strong as the pull forward of e-commerce penetration has strained delivery capacity," Seeking Alpha reported Bernstein as saying. "Pricing is the key to getting better returns out of residential delivery, and once the carriers begin to take price / improve margins we expect the market to move beyond the 'e-commerce driven negative margin mix shift' narrative that has plagued the sector."
Shares of FedEx and United Parcel Service (NYSE:UPS) rose last week after they said they will be raising prices aggressively to help manage the overwhelming demand as a result of stay-at-home mandates prompted by Covid-19, Bloomberg said.
FedEx will boost international fees on select routes starting Monday, and said it also plans to apply holiday surcharge.