Shares of FedEx slumped 13% on Friday after the parcel giant's dismal first-quarter results, in what analysts attributed to a combination of broader economic concerns and an unfavorable shift in the company's sales away from higher-priced deliveries.

FedEx, as a shipping giant, is often seen as a barometer for global economic trade and growth. Consequently, on Friday, it dragged down the shares of its rivals, UPS and DHL.

FedEx is in the midst of a complex restructuring to cut billions of dollars in overhead.

"While DRIVE and other structural change initiatives have certainly taken hold, a persistent languor in demand continues to overhang its benefits...," Raymond James analyst Patrick Brown said.

FedEx said on Thursday its profits were pressured due to waning demand for lucrative priority shipments between businesses, leading to a slew of price target cuts from Wall Street analysts.

High borrowing rates and a challenging macroeconomic environment have forced customers to look for opportunities to keep costs in control.

"Weakness in the industrial economy pressured our B2B volumes, particularly in the US," CEO Raj Subramaniam said.

FedEx lowered the top end of its full-year adjusted operating income to between $20 and $21 per share, versus its previous range of $20 to $22 per share.

"The lower end of the EPS range reflects assumptions that the pricing environment continues to be very competitive and the industrial economy remains challenged," Baird analyst Garrett Holland said in a note.

It also cut its fiscal 2025 revenue forecast and now expects it to grow by a low single-digit percentage compared with a low-to-mid single-digit percentage growth it forecast earlier.

"The pressure on profitability shows FedEx is still a way off rightsizing its cost base after expanding rapidly to meet extra demand during the pandemic, when demand for shipping increased," AJ Bell investment director Russ Mould said.

Rival UPS fell 3% while European peer DHL's Frankfurt-listed shares were down 2.9%.

At least eight brokerages cut their price target on FedEx stock. BoFA Global Research cut its target by $37 to $308, the heftiest on Friday.