Recently FedEx published fairly strong financials for the 1st quarter of the 2014 fiscal year that started on May 31. According to the report, revenue grew by 2.1% y/y, EBITDA rose 8.8% y/y. Net profit increased 6.5% y/y exceeding expectations by 2.9%. The quarter results reflect a turning point in international trade, which slowed in the previous period and may soon start rising again, the growth in air travel worldwide conferms this. The positive aspects include the reduction of expenses, which led to margins growth. In addition, the company recently announced that it is going to buy back 32 million shares (10% of free float), which is equivalent to $4.1 billion. This fact shows the confidence of the management that current stock price is low. Moreover, possible recovery of international trade can significantly improve FedEx’s financials in the coming quarters, which should translate into the company's share price appreciation. Our medium-term fundamental value of FedEx shares is $150. Short-term technical goal is $140.