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Investing.com - Bernstein SocGen Group reiterated an outperform rating on DSV A/S (CSE:DSV) (OTC:DSDVF) on Thursday, maintaining its price target of DKK1,650.00.
The firm named DSV its top pick in European logistics, citing synergies that it believes are "inadequately reflected in valuations." Bernstein highlighted DSV’s "superb track record of synergy realization" across five acquisitions over the past two decades.
The research firm expects DSV’s acquisition of DB Schenker to close in Q2 2025, after which DSV would become the largest freight forwarder globally by both airfreight and seafreight volumes. Bernstein projects the deal will deliver post-synergy earnings per share exceeding DKK 100 by 2028.
Following the synergy realization period, Bernstein anticipates DSV will restart its share buyback program, with capacity to repurchase approximately DKK24 billion of shares annually. This compares to DSV’s current market capitalization of DKK376,296 million.
The firm also noted DSV’s defensive business model as a freight forwarder, which can "flex quickly in response to volume pressure," providing additional stability to the company’s operations.
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