BofA Keeps DSV at Buy Amid 'Achievable' Integration Targets; Forecasts Revised

12:21 PM EDT, 09/17/2026 (MT Newswires) -- BofA Global Research reaffirmed its buy rating on DSV (DSV.CO), still viewing the company's integration targets related to its DB Schenker deal as "achievable" despite increased execution risk from disruption in the Road segment. "Road disruption has raised legitimate questions over whether DSV can complete the Schenker integration by end-2026 and deliver DKK9bn of annual synergies by 2027. We continue to forecast both targets as achievable, but recent execution issues have made the integration timeline more demanding. TheDKK9bn target was reiterated at the CMD in May," analysts said Thursday. "Importantly, the biggest segment Air & Sea has already shown progress with a reduction in costs resulting in conversion ratio increasing to 42% in 2Q. Similarly, Contract Logistics showed top line growth with EBIT margin increasing to 11% in 2Q." Against this backdrop, the research firm revised its financial estimates for DSV, including higher group EBIT before special items and adjusted EPS forecasts for 2026. For 2027, on the other hand, projections for both metrics were reduced, mainly due to lower Road EBIT expectations. "At 16x2027 P/E, the shares trade below their long-term average of 23.5x and at a -25% discount to peers. Our sensitivity analysis suggests they imply Road margins drop to 2% (below 3.1% combined) and ocean yields fall to DKK3000 in 2027, below pre-pandemic levels. We think this is too bearish and reiterate our Buy rating." The stock's price objective of 2,100 Danish kroner was also reiterated.