FedEx's decision to spin off its freight truckload segment will strengthen the business while allowing the parcel delivery giant to better tackle challenges in its core operations, analysts said on Friday.

FedEx Corp. shares soared after the company said it plans to spin off its freight division into a separate publicly traded company in a deal that will streamline the parcel giant.

FedEx Corp. said late Thursday it plans to spin off its FedEx Freight unit and create two publicly traded standalone companies as the shipping giant looks to “unlock value” for investors.