Analysts at Berenberg Bank lowered their price target on FedEx Corporation (NYSE:FDX) to $330 from $350 viewing the current cost pressures not just a one-quarter issue, however believing in the long-term upside and keeping their buy rating.

The company’s shares have now lost much of their gains made over the past 18 months, after a substantial Q1 results miss, driven entirely by cost inflation. Despite benefiting from the e-commerce boom and the rebound of industrial volume in the US, the company has also fallen victim to the other side of current macro trends: wage inflation and logistical disruption.

Although the disappointment does nothing to help FedEx’s reputation for under-delivering in the short term, in the long term the brokerage still thinks the upside case is intact. However, it acknowledges that heading into Christmas amid inflationary headlines may lead to a tricky short-term period for the shares.