Deutsche Bank sees opportunity in DSV shares amid integration issues

Investing.com -- Deutsche Bank said logistics stocks covered by the firm rose 3.3% on average since its last monthly report, with Maersk standing out at approximately 30% growth following a second upgrade to full-year expectations after its first-half results.

The upgrade follows higher ocean freight rates. Maersk said the increase could be structural, driven by sustained demand growth even after July tariffs, and higher congestion at Asian and European port terminals that could take time and investments to ease.

Deutsche Bank's proprietary dbDataInsights data shows elevated congestion at Asian and global ports, as well as continued throughput growth. The bank said this should keep freight rates elevated in the near term.

The bank said this is already well reflected in the price, especially considering looming oversupply and a potential Red Sea reopening in 2027. Deutsche Bank remains neutral on container shipping.

For freight forwarders, markets have adopted a wait-and-see approach to DSV, which fell approximately 2% since the last monthly report, while preferring Kuehne + Nagel, which rose about 10%.

Deutsche Bank said DSV shares offer an interesting entry point for what it views as a near-term issue in road integration rather than a structural problem. The bank expects further clarity with third-quarter results scheduled for Oct. 21, by which time on-time delivery in road should be back to normal.

DHL has been flat over the past month but shares are approximately 22% higher year-to-date. Deutsche Bank remains positive on DHL and DSV, where increasing global supply-chain complexity should see a favorable pricing environment prevail.

You May Also Be Interested In

• SolarEdge (SEDG) PT Lowered to $31 at Jefferies, 'We see shares as an unappealing short, not a compelling long'
• GoDaddy Data Reveals Where America's Entrepreneurs Are Building Their Businesses
• Erste Group Upgrades Shell Plc. (SHEL) to Buy