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On Tuesday, JPMorgan updated its financial outlook for DSV A/S (DSV:DC) (OTC:DSDVF), a global transport and logistics company, by increasing the price target to DKK 1,915 from DKK 1,800. The firm maintained its Overweight rating on the stock.
The revision follows DSV’s completion of the acquisition of Schenker, which marks the beginning of the integration phase for the two companies. JPMorgan analyst Alexia Dogani expressed confidence in DSV’s ability to navigate the integration successfully, even amidst a challenging trade environment.
Dogani pointed out that the new price target represents approximately a 30% upside potential. The increase is attributed to the expected benefits from the Schenker deal, including estimated synergies of DKK 9 billion by 2028. The analyst projects that these synergies will boost DSV’s EBIT for 2025 to DKK 20.8 billion, which is above the company’s own guidance range of DKK 19.5 to 21.5 billion.
Looking further ahead, JPMorgan forecasts a 2028 EBIT of DKK 33.7 billion for DSV, with earnings per share (EPS) reaching DKK 105. This outlook includes the anticipated resumption of share buybacks in the second half of 2027.
The analyst also highlighted the potential for DSV to outperform expectations through three key areas: maintaining lower customer attrition rates, optimizing systems after 2028, and the possibility of achieving a 10% EBIT margin for the Road division of the enlarged entity, referred to as a "blue sky scenario." These factors could provide additional upside in the years following the initial integration phase.
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