Street Calls of the Week
Investing.com - Bernstein analyst Alex Irving reiterated a Market Perform rating on Kuehne + Nagel International AG (SIX:KNIN) with a price target of CHF175.00.
The freight forwarding company has underperformed peers DHL and DSV in volume growth during 2024, according to the analyst’s assessment.
Bernstein attributes this underperformance to "too-deep headcount reductions in early 2024," which may have "impaired the commercial muscle of the organization."
Despite cost reduction efforts, these measures have not sufficiently offset the company’s volume growth challenges, the analyst noted.
The stock has experienced a de-rating, and Bernstein expects "little investor appetite to increase an allocation to Kuehne+Nagel until execution improves," though it acknowledged the company’s flexible cost base and asset-light business model provide protection during downturns.
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