DPSTF - Deutsche Post: Still A Decent Long-Term Opportunity
2023-04-10 04:17:32 ET
Summary
- Deutsche Post has shown a very impressive performance over the last 5 years with it reaching record revenue levels in FY22, driven by pandemic tailwinds.
- FY23 is expected to be a much more difficult year as a normalization in the freight market and continued uncertainties will drive a cyclical step back in earnings.
- Still, the long-term growth thesis is still decent with Deutsche Post showing a resilient business mix and growth trends in e-commerce still strong.
- Management is focused on returning cash to shareholders, even in an economic downturn. This has resulted in an upgraded share repurchase program.
- Deutsche Post continues to trade at a discount to its largest peers and still offers a favorable risk-reward profile.
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Deutsche Post: Still A Decent Long-Term Opportunity