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Investing.com - Barclays (LON:BARC) initiated coverage on NTG Nordic Transport Group A/S (CSE:NTG) with an Overweight rating and a price target of DKK310.00 on Tuesday.
The Danish freight forwarder, founded in 2011, generates approximately 75% of its gross profit from road transport and ranks among the top 15 European road freight forwarders, according to Barclays’ analysis.
Despite its smaller size compared to industry leader DSV, NTG’s current position mirrors DSV’s pre-2000 status when it was expanding beyond Nordic road operations, with NTG now pursuing a similar strategy to expand its road business across Europe and grow its air and ocean business through acquisitions.
Barclays notes that NTG delivers top EBIT margins in road transport compared to peers, attributing this performance to the company’s lean operating model focused on higher-yielding verticals and its concentration on full truckload and part-load services, which are generally less asset and labor-intensive than groupage services.
The firm also highlighted NTG’s best-in-class technology platforms in road transport as an increasingly important competitive advantage in an industry where the digitalization gap continues to widen as shippers demand more sophisticated solutions.
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