Morgan Stanley upgraded Kuehne & Nagel to Equal Weight from Underweight with a price target of CHF 159, down from CHF 184. The company’s planned sales mix improvement in Sea has clearly not delivered the desired pick-up in profitability and conversion margins have declined, and while larger M&A would offer opportunities, Kuehne & Nagel has instead focused only on bolt-ons to the detriment of margins, the analyst tells investors in a research note. This has driven a meaningful underperformance, but with the management now focused on cost cutting, further downside in the near term is “unlikely”, the firm added.
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Read More on KHNGY:
- Kuehne & Nagel downgraded to Underweight from Equal Weight at Barclays
- Kuehne & Nagel price target raised to CHF 128 from CHF 127 at Citi
- Kuehne & Nagel price target lowered to CHF 159 from CHF 182 at Deutsche Bank
- Kuehne & Nagel price target lowered to CHF 130 from CHF 140 at JPMorgan
- Kuehne & Nagel’s Mixed Q3 Earnings Call Analysis