Deutsche Bank raises DHL Group price target on resilient cash flow

Published 12/06/2025, 15:22
Deutsche Bank raises DHL Group price target on resilient cash flow

Deutsche Bank (ETR:DBKGn) raised its price target on DHL Group (DHL:GR) to EUR47.00 from EUR42.00 on Thursday, while maintaining a Buy rating on the logistics company’s stock. The price target increase represents an 11.9% upside from the previous valuation.

The bank cited DHL’s market-leading assets with high barriers to entry and proven ability to adapt to uncertainty as key factors supporting the positive outlook. Deutsche Bank expects DHL’s free cash flow to remain resilient at approximately EUR3 billion.

This cash flow strength should allow DHL to maintain at least a flat dividend of EUR1.85 per share, representing a 4.5% yield, while also continuing share buybacks. Deutsche Bank acknowledged DHL’s cyclical nature and earnings volatility but emphasized that the resilient free cash flow supports its medium-term buy recommendation.

Deutsche Bank anticipates DHL’s second-quarter results, scheduled for August 5, will demonstrate profits that have held up well despite market volatility. The logistics company has navigated challenging market conditions while maintaining its financial performance.

The price target adjustment comes as DHL continues to leverage its global logistics network amid evolving supply chain dynamics and economic conditions. The company’s ability to generate consistent cash flow has become a focal point for investors seeking stability in the transportation sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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