DHL Group Faces Challenges as Kepler Cheuvreux Downgrades Stock to "Hold"
DHL retracts buying advice due to challenging achievement of set target
In a recent development, Deutsche Post DHL Group (DHL) finds itself in a challenging position, as analyst firm Kepler Cheuvreux has downgraded the company's stock from "Buy" to "Hold". This decision comes amidst concerns about DHL's susceptibility to a slowdown in global freight compared to other industry players.
According to analyst Marc Zeck, DHL's operational earnings target of over six billion euros appears to be a difficult achievement. As a result, Zeck now expects the operational earnings to be around 5.9 billion euros. This revised expectation is a slight decrease from the previous target.
The current 50-day line for DHL Group stands at 39.90 euros, serving as the first important support for the company's stock. In early trading, DHL Group shares fell as much as 1.5 percent to 39.95 euros, but managed to recover just above the 50-day line.
Kepler Cheuvreux has also lowered its price target for DHL Group from 45 euros to 43 euros. A sustained break below the 50-day line would put the bulls on the defensive for DHL Group, potentially indicating a bearish trend.
However, if the stock manages to stabilise, there's potential for a move towards 44 to 45 euros over the next 12 months for DHL Group. This optimistic outlook suggests that there may still be opportunities for growth for the company, despite the current challenges.
In terms of favourites in the industry, Kepler Cheuvreux has expressed preference for Danish competitor DSV. This shift in preference could indicate a perceived advantage for DSV in navigating the current market conditions.
It's worth noting that the majority shareholder of Börsenmedien AG, which holds DHL shares, is not explicitly stated in the provided search results. This information could provide additional context to the current situation, but it is not available at this time.
In conclusion, DHL Group is currently facing challenges in the global freight market, as reflected in the downgrade of its stock by Kepler Cheuvreux. While the outlook is not entirely negative, with potential for growth over the next 12 months, the company will need to navigate these challenges carefully to maintain its position in the industry.
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