DSV Shares Sink after Earnings Day as Analysts Call the Sell-Off Overdone
DSV shares were hammered after Wednesday’s Q2 report, falling nearly 15 percent on the day despite the logistics group posting its strongest quarterly EBIT since the Schenker acquisition.
The stock fell a further 1.7 percent on Thursday, deepening the sell-off.
The market’s reaction contrasts sharply with sell-side sentiment. BofA reiterated its buy rating, calling the roughly 15 percent drop overdone.
Underlying EBIT came in at DKK 6.0 billion for Q2, excluding a DKK 250 million one-off gain — in line with expectations — while free cash flow of DKK 786 million missed on higher working capital.
DSV raised full-year EBIT guidance to DKK 23.5–25.5 billion, as expected; BofA left its own estimate largely unchanged at DKK 24.2 billion and trimmed its target price to DKK 2,175 from DKK 2,250.
Other banks broadly held their buy ratings while adjusting targets:
- Danske Bank cut to DKK 1,990 (from 2,000)
- Deutsche Bank cut to DKK 1,823 (from 1,881)
- JPMorgan cut to DKK 2,165 (from 2,200, overweight)
- Morgan Stanley cut to DKK 2,100 (from 2,150, overweight)
- Nordea and Berenberg both raised targets to DKK 2,210 (from 2,165)
- Landesbank Baden-Württemberg raised its target to DKK 1,900 (from 1,880).
With targets still well above the post-sell-off share price, the gap between analyst conviction and market reaction is the story to watch.