Citi lifts DSV's PT by nearly 60%, says Schenker integration can unlock capital

Dsv A/S

16/12/2024 10:10

** Citigroup raises its PT for DSV  DSV.CO  to DKK 2,300
from DKK 1,450, saying the Danish logistics group can unlock a
large amount of capital through warehouse optimization post the
Schenker acquisition
    ** The DSV stock closed at DKK 1,541.50 on Friday
    ** Citi says that optimization of warehouses could unlock
EUR 1.8 bln ($1.89 bln) of capital for DSV, alongside other
efficiency gains
     ** This assessment is based on an analysis of Schenker and
DSV warehouses, which mapped out close to 1,000 locations and
showed an around 26% overlap, the broker says
    ** "We assume the integration to start in Q2'25 and expect
the combined adjusted EBIT to more than double by 2027 to DKK
37.3bn" - Citi
     ** It expects Schenker's integration into DSV's platform to
reduce the German entity's higher costs by 2027, yielding an
extra DKK 1.2 bln ($169 mln) in synergies
     
($1 = 0.9519 euros)
($1 = 7.0983 Danish crowns)

 (Reporting by Agnieszka Olenska)
 ((Agnieszka.Olenska@thomsonreuters.com;))