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On Wednesday, Jefferies initiated coverage on DSV A/S (DSV:DC) (OTC: DSDVF), a global transport and logistics company, with a Buy rating and a price target of DKK1,700.00. The firm’s analysis highlighted DSV’s strategic capital allocation towards growth and share buybacks, as well as its successful track record in integrating acquisitions.
The Jefferies report focused on the expected contributions from the recent acquisition of Schenker and the anticipated yields. The analysts at Jefferies have factored in €600 million (DKK4.5 billion) in synergies and a total contribution of DKK12.6 billion from Schenker by 2028. They noted that DSV’s stock is currently trading on par with its peer Kuehne + Nagel on a pro forma basis, evaluated at 17 times earnings before interest and taxes (EBIT).
The report also pointed out that DSV is expected to trade at a 2-3 times multiple discount in the years 2026 and 2027. The analysts expressed optimism about the potential upside from DSV’s execution of its business strategy, leading to the initiation of the Buy rating.
DSV’s performance and future outlook hinge on the successful integration of Schenker and the yields from this strategic move. Jefferies’ coverage commencement and the positive outlook provide investors with a perspective on the company’s valuation and growth prospects in the logistics sector.
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