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Investing.com - Barclays downgraded Kuehne + Nagel International AG (SIX:KNIN) from Equalweight to Underweight and lowered its price target to CHF140.00 from CHF165.00. This comes as the stock trades near its 52-week low of $36.76, down nearly 20% over the past year. According to InvestingPro data, two analysts have recently revised their earnings expectations downward for the upcoming period.
The downgrade comes despite growing market confidence that the downgrade cycle for the Swiss logistics company might be over. Barclays cited several ongoing risks, including gross profit per twenty-foot equivalent unit (GP/TEU) remaining approximately 30% above pre-pandemic levels when adjusted for various factors. This concern aligns with InvestingPro data showing Kuehne + Nagel trading at a high P/E ratio of 18.12 relative to its near-term earnings growth, with a concerning PEG ratio of 12.69.
Barclays expects a slight quarter-over-quarter decline in Q4, contrary to Kuehne + Nagel’s guidance for flat performance, setting a lower baseline for fiscal year 2026. The reopening of the Red Sea shipping route and a more stable tariff environment could negatively impact yields due to lower supply chain disruption.
The firm also expressed concern about Kuehne + Nagel’s strategy of growing volumes ahead of the market, noting this approach has historically been positive for unit costs but negative for yields, as observed during the 2015-2019 period and in Q2/Q3 2025.
Barclays further questioned the company’s ability to deliver on its new cost-saving initiatives, pointing to a mixed track record with similar plans announced in 2023/2024 that were largely offset by inflation and gradually lost visibility in financial reporting.
In other recent news, Bernstein analyst Alex Irving has reiterated a Market Perform rating on Kuehne + Nagel International AG. The analyst has set a price target of CHF175.00 for the company. According to Irving’s assessment, Kuehne + Nagel has underperformed compared to its peers DHL and DSV in terms of volume growth for 2024. These developments provide insights into the company’s current standing in the market. This reiteration by Bernstein highlights the firm’s outlook on Kuehne + Nagel’s performance relative to its industry competitors. Investors may consider these factors when evaluating the company’s future prospects.
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