Jefferies favours air freight over sea in 2025 on more resilient rates

Dsv A/S

12/03/2025 09:36

** Jefferies says capital allocation will shape the winners in European transport, expecting air freight to outperform sea freight in 2025 amid more resilient rates

** There is a clear correlation between gross profit and freight rates in the sector, says the broker, which expects cost of air freight to be back to historic lows in 2025

** It warns of a potential decline in container shipping rates later in 2025, depending on improvements in the Red Sea

** Jefferies initiates DHL DHLn.DE with "buy", saying air freight holds up and past capacity investments start driving efficiency gains

** It also starts DSV DSV.CO with "buy", expecting 15-20% EBIT growth driven by synergies from the Schenker acquisition

** "The key issues (for DSV) over the next 12 months will be the scale and progression of synergies in 25/26 and the direction of yields," the broker says

** It starts Kuehne+Nagel KNIN.S with "hold", noting its limited organic growth and high sea freight exposure which could weigh on performance in 2025

 (Reporting by Jesus Calero)

 ((Jesus.calero@thomsonreuters.com))