On Friday, JPMorgan (NYSE:JPM) increased its stock price target for DSV A/S (DSV:DC) (OTC: DSDVY) from DKK1,450.00 to DKK1,685.00, while maintaining an Overweight rating on the stock. The adjustment reflects the firm's positive outlook following DSV's robust third-quarter 2024 EBITDA performance and minor estimate changes.
The firm also factored in potential benefits from DSV's impending Schenker acquisition, assigning a DKK25 per share value for this M&A optionality in their analysis. The acquisition is anticipated to be finalized by the second quarter of 2025, and it is believed to present an attractive multi-year earnings before interest and taxes (EBIT) growth opportunity for DSV.
Analysts at JPMorgan expect the market to concentrate on DSV's short-term commercial strategy as the company navigates a subdued trade environment. The goal for DSV is to capture more market share while maintaining current gross profit rate levels. The firm's emphasis on executing the new volume outturn is also highlighted.
The integration of Schenker is seen as a positive move by JPMorgan, with the expectation that management will deliver on the synergies for the combined group. The anticipated closure of the Schenker deal by the second quarter of 2025 is projected to bolster DSV's position and drive share performance in the coming years.
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