2024-07-10 14:54:46 ET
Summary
- Maersk stock is a Hold opportunity from the Buy rating we gave the stock last April; it has potential for the share price to increase on momentum.
- Concerns about risks affecting freight rates, revenue, profits, and costs make us skittish about the stock after the recent 25% increase.
- Maersk faces challenges from oversupply of ships, slowing Chinese factory output, geopolitical instability, and the prospects of peace in the Gulf.
Overview
We are cutting our earlier Buy rating of A.P. Møller - Mærsk A/S ( AMKBY ) that we announced last April. We assess the stock as a Hold opportunity with a potential for the share price to increase on momentum. Maersk shares are up ~25% since mid-March. The per share prices on the Marine Shipping Index soared ~30% YTD. The consensus is container shipping freight rates are going to continue increasing....
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For further details see:
Maersk: Making Us A Little Sea Sick But Holding On