Cedar Ekblom, an analyst from Morgan Stanley, has initiated a new Buy rating on DSV A/S (0JN9).
Cedar Ekblom has given his Buy rating due to a combination of factors surrounding DSV A/S’s strategic moves and financial projections. The acquisition of Schenker positions DSV as the largest player globally by revenue, which is expected to drive significant growth. Ekblom estimates a 22% compound annual growth rate in earnings per share from 2024 to 2028, highlighting the potential for substantial financial improvement.
A key element of this optimistic outlook is DSV’s plan to close the margin gap with Schenker by achieving DKK9 billion in synergies. These synergies are anticipated to arise from consolidating operations and optimizing logistics and IT infrastructure. Additionally, the integration of Schenker is expected to enhance DSV’s performance in the EU land transport sector, with potential EBIT margin improvements. Despite a challenging macroeconomic environment, DSV’s strategic initiatives and valuation metrics provide a solid foundation for the Buy rating.
According to TipRanks, Ekblom is ranked #2008 out of 9371 analysts.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a DKK1,700.00 price target.