Transport, logistics: COVID-19 puts severe pressure - Berenberg

Oesterreichische Post AG

27/03/2020 08:21

** The coronavirus pandemic will put severe pressure on
earnings across the logistics sector as it impacts volumes
across the supply chain, Berenberg says
    ** Business-to-business (B2B) deliveries remain a big driver
of earnings, so the shift towards business-to-customer (B2C)
parcels will impact companies' margins, the broker adds
    ** Integrated logistics companies Deutsche Post  DPWGn.DE ,
UPS  UPS.N  and FedEx  FDX.N  remain strong thanks to their
consolidated market and B2C e-commerce exposure, Berenberg says
    ** However, the broker cuts UPS to "hold" from "buy" as it
sees limited short-term potential for further improvement due to
risks to U.S. margins
    ** Shipping companies such as Maersk  MAERSKb.CO  and Hapag
Lloyd  HLAG.DE  are being helped by cheap oil, but the situation
could change as demand drops in H2, Berenberg says
    ** Postals may be hurt by letters more than they are helped
by parcels, Berenberg adds as it keeps a "sell" rating on
Austrian Post  POST.VI  and Royal Mail  RMG.L 

 ((zuzanna.szymanska@tr.com))