As Amazon.com Inc. (AMZN) fears continue to dominate market sentiment and take chunks of value out of traditional industry leaders, one team of analysts says investor concerns over the e-commerce giant’s threat to FedEx Corp. (FDX) are overblown.

Last week, the Seattle-based online retail behemoth announced that it has been testing a new delivery service, sending shares of parcel shipping company FedEx sinking. The new “Seller Flex” program involves Amazon picking up packages from third parties selling on its platform and delivering them to consumers’ homes, taking over a role traditionally handled by FedEx and United Parcel Service Inc. (UPS). (See also: Amazon—Not Apple—Will Be First $1T Co.: NYU Prof.)

Parcel Shipping Giant Will Outperform

In response to the FDX sell-off, Cowen analyst Helane Becker published a research note in which she argues that instead of falling victim to Amazon, FDX shares will outperform the market.

The analyst reiterated an outperform rating on FDX, indicating that the company is in a position to overcome new threats and improve its long-term value for shareholders. Becker highlighted the near-half-century-old firm’s proven history of adapting to various economic environments, maintaining its powerful brand and massive scale. The analyst also noted upside from FedEx’s geographically diverse aircraft fleet, its network of global distribution centers and its commitment to investing in information technology.

Helane issued a $240 price target on FDX, suggesting shares will rise 8.6% over the next 12 months from Tuesday afternoon. Morningstar equity analyst Keith Schoonmaker echoed this sentiment in a note following Amazon’s announcement, indicating that that the new delivery program may not hurt FedEx or UPS as much as expected. “I think it's important to frame UPS' and FedEx's exposure to Amazon. UPS says that no customer constitutes 10 percent of its revenue, and FedEx says no one constitutes three percent of its revenue. We would gauge earnings exposure more like mid-single digits to UPS and maybe 2 percent for FedEx,” said the Morningstar analyst in an interview with CNBC. (See also: Amazon Gets Its Most Bullish Call Yet—a $1,400 PT.)