Package delivery company FedEx Corp. could become a target for private equity buyers because of its modest valuation and turnaround potential, Barron's reported in its July 9 issue.

With an enterprise value of $35 billion, FedEx is valued at about six times expected fiscal 2008 earnings before interest, taxes, depreciation and amortization, or Ebitda.

One need not get anywhere near the recent double-digit Ebitda valuations of (leveraged buyouts) in other industries to get to a share price more than 20 percent above current levels, Barron's said in the report.

The attraction for buyout firms would be the potential to cut capital expenditures to help finance 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 fine on their own, the investor weekly said.

FedEx shares, which are essentially flat this year, closed on Friday at $110.84.