FedEx’s (FDX) fiscal first quarter earnings disappointed Wall Street while cutting its full-year guidance, sending its stock plunging in Friday's session. Stephens Equity Research Managing Director for Transportation Daniel Imbro has an Overweight rating on FedEx, believing the stock reaction to be justified while recommending "buying it here at the $250s as the next 12 months offers an attractive risk-reward from these levels."

While the postal carrier looks to the holiday season, Imbro anticipates this year “to shape up a little more seasonally normal” and that FedEx is “seeing good leading indicators” with potential risks still lying ahead. Imbro notes the shipping giant sees more trade downs from priority freight to deferred freight: “If that continues, that could be a drag on actual revenue."

When asked about the possible effects of future tariffs, Imbro says the impact could be mixed and “some parts of the business might get busier as supply chains get disrupted but ultimately tariffs would be inflationary."

Watch the video above to hear what might be next for FedEx after its latest earnings report.

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This post was written by Nour El Hoda Seleem.