RBC sees continued earnings growth for European logistics sector
** RBC says European logistics space is "still a growth sector", noting the volume outlook for trade enablers appears brighter than expected despite deglobalization concerns
** The brokerage says AI is "more of an opportunity than a threat" for large players, enabling cost efficiencies and further market share gains
** Within the space, the broker starts German logistics firm DHL Group DHLn.DE at "outperform" with a €67 PT on an upbeat volume outlook and strong express delivery prospects
** It initiates coverage of freight forwarders Kuehne + Nagel KNIN.S and DSV DSV.CO at "sector perform" with PTs of CHF 235 and DKK 1,250, respectively, on freight rate moderation headwinds
** The broker expects elevated container ship deliveries to drive industry overcapacity, weighing on sea freight rates and creating a medium-term headwind for the forwarders
COMPANY | NEW RATING | OLD RATING | NEW PT | OLD PT |
|---|---|---|---|---|
DHL | outperform | -- | € 67 | -- |
DSV | sector perform | -- | DKK 1,250 | -- |
Kuehne + Nagel | sector perform | -- | CHF 235 | -- |