BUZZ — 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 at "outperform" with a €67 PT on an upbeat volume outlook and strong express delivery prospects * It initiates coverage of freight forwarders Kuehne + Nagel and DSV 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 — (Reporting by Marta Frackowiak) ((marta.frackowiak@thomsonreuters.com)
* 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 at "outperform" with a €67 PT on an upbeat volume outlook and strong express delivery prospects * It initiates coverage of freight forwarders Kuehne + Nagel and DSV 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 — (Reporting by Marta Frackowiak) ((marta.frackowiak@thomsonreuters.com)