DHL stock downgraded to sell by UBS on tariff impact concerns

Published 24/06/2025, 09:34
DHL stock downgraded to sell by UBS on tariff impact concerns

Investing.com - DHL Group (DHL:GR) was downgraded from neutral to sell by UBS on Monday, with its price target reduced to EUR36.00 from EUR37.50.

UBS cited concerns that the market is underestimating profitability headwinds from U.S. tariff implementation, with freight volume and pricing pressures expected to intensify in the second half of 2025.

The firm’s proprietary transponder data shows demand for Express services has been sequentially weakening on Transpacific routes, suggesting deteriorating conditions in a key market segment.

UBS also expressed skepticism about DHL’s Express division’s mid-term industry volume growth and EBIT expectations, predicting that down-trading and reduced tailwinds from weights and pricing compared to previous periods will limit profit growth potential.

The downgrade reflects UBS’s expectation of further earnings per share downgrades for fiscal years 2026 and 2027, with their estimates approximately 7 percent below consensus forecasts.

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