PSTNY - Deutsche Post DHL: Surfing The New Ecommerce Wave

• Deutsche Post DHL Group is one of the key beneficiaries of the renewed global e-commerce boom propelled by the pandemic.
• Tight air cargo capacity is pushing up airfreight rates, benefiting integrated companies like DHL, which are offsetting the fall in trade volumes.
• Expect high single-digit earnings growth and better FCF generation going forward based on resilient top-line growth, margin expansion, and Capex normalization.
• At 12.5x NTM EV/EBIT, It is trading in line with its 5y historical average and well below its US peers. Our SOP valuation would make the case for a re-rating.

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