MS resumes DSV with 'overweight' post Schenker deal

Dsv A/S

02/05/2025 09:11

** Morgan Stanley resumes coverage of DSV DSB.CO with "overweight" rating following the acquisition of Germany's Schenker

** It says the Danish logistic group's target to deliver DKK 9 billion in synergies looks "credible" and can prove conservative

** DSV plans to consolidate operations, logistics, and IT infrastructure, leveraging Schenker's stronger system freight setup

** MS says the deal brings together the number 1 and 3 players in EU land transport based on revenues and deems success in DSV's Road division as important, with DSV targeting combined EBIT margin of 10% mid-term

** The broker makes little changes to its 2025 EPS estimates, but by 2028 it sees EPS more than doubling, with 2024-2028 EPS CAGR growth of 22%

** Out of 22 analysts that cover DSV, 21 rate the stock "strong buy" or "buy,"​ and one rates it "hold"

 (Reporting by Anna Chaberska)

 ((Anna.chaberska@thomsonreuters.com;))