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On Friday, Goldman Sachs resumed coverage on DSV A/S (DSV:DC) (OTC:DSDVF), issuing a Buy rating and setting a price target of DKK 2,000.00. The firm’s analysis projects that DSV will improve its combined group margin to 10% by the fiscal years 2027/28, up from an estimated 8% in 2025 and slightly higher than the 9.6% margin recorded in 2024. Additionally, Goldman Sachs anticipates that DSV’s earnings before interest and taxes (EBIT) will nearly double, reaching DKK 30 billion by 2028, a significant increase from the standalone estimate of DKK 15.5 billion for 2025.
The Goldman Sachs coverage points out differences from the consensus in two key areas. Firstly, the firm expects DSV’s Air & Sea EBIT to be lower than consensus due to anticipated higher customer churn and a more conservative outlook on unit revenue and gross profit. Secondly, they are more optimistic about the Road EBIT, where they believe DSV will benefit from transformative scale and IT improvements through DBS, as well as substantial potential for overhead reduction within DBS land transport.
Despite these variances, Goldman Sachs’ EBIT forecasts remain below consensus across their forecast horizon. However, they suggest that DSV’s earnings per share (EPS) could double from approximately DKK 50 in 2024 to between DKK 95 and DKK 106 by the fiscal years 2028/29.
Goldman Sachs’ positive outlook on DSV is based on detailed analysis and expectations of the company’s financial growth and operational efficiency. The firm’s coverage reinstatement and price target reflect a confidence in DSV’s ability to enhance profitability and deliver substantial earnings growth over the coming years.
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