BMO Capital analyst Fadi Chamoun downgraded FedEx to Market Perform from Outperform with a price target of $165, down from $190.

The shipping giant in premarket trading is down 11%, or $19.25, to $154.05. The company last night missed Q1 estimates on weaker than expected results in the Ground segment and management lowered fiscal 2020 earnings guidance by 18%, Chamoun tells investors in a research note.

The analyst, who continues to have a positive bias for the long-term outlook, says FedEx's near-term challenges are larger than anticipated and that "visibility into a positive inflection point in fundamentals is limited."

The weaker global macroeconomic environment is weighing more heavily on the company's higher-margin business-to-business business than anticipated, says Chamoun.