FedEx could become a target for private equity buyers because of its modest valuation and turnaround potential, Barron’s reported. With an enterprise value of US$35 billion, FedEx is valued at about six times expected fi scal 2008 earnings before interest, taxes, depreciation and amortisation.

Barron’s said the attraction for buyout fi rms would be the potential to cut capital expenditures to help fi nance a deal as well as the opportunity to turn around ailing retail unit FedEx Kinko’s.

Even without a buyout, which Barron’s said may not be imminent or even likely, FedEx shares should perform fi ne on their own, the investor weekly said.