Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Bernstein reiterated its Market Perform rating and CHF190.00 price target on Kuehne + Nagel International AG (SIX:KNIN) (OTC:KHNGY) on Thursday.
The research firm cited execution challenges at the Swiss freight forwarding company during 2024, noting that Kuehne + Nagel has underperformed competitors DHL and DSV in volume growth metrics this year.
Bernstein attributed the underperformance to "too-deep headcount reductions in early 2024," which it believes have "impaired the commercial muscle of the organization" despite the company’s focus on organic growth and high dividend payouts.
The stock has experienced a derating, and Bernstein expects "little investor appetite to increase an allocation to Kuehne + Nagel until execution improves" in the freight forwarding business.
Despite these concerns, Bernstein acknowledged that as a freight forwarder, Kuehne + Nagel "enjoys a flexible cost base and asset-light business model that protects it in a downturn."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.