Davy Research

Transport Logistics

Line your pockets!
Transport Logistics

DAVY VIEW

Container liners are like airlines on steroids – there is massive gearing to a yield number that, let’s be honest, is practically impossible to forecast. So why bother looking at A.P. Møller Maersk? The weak earnings backdrop for liners is turning a vicious cycle virtuous as carriers shift from ‘build’ to ‘buy’ at the fastest rate on record. The industry order book is also at its lowest level in almost two decades. At a micro level, we think the synergy potential from the corporate re-organisation and recent Hamburg Süd deal is not fully reflected in the valuation. We see at least 40% upside from current levels and initiate with an ‘Outperform’ rating and a price target of DKK14,000.

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Transport Logistics

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