Updating Estimates. View into Q2.

Research evidence excerpt

Updating Estimates. View into Q2.

0.7

continued industry growth in the tech vertical. This was a theme prevalent in Q1 in FCF yld ratio (%)** 4.3 3.5 6.1 6.7

Net debt (DKr mn)* 84,756 77,945 74,719 74,604

logistics and we expect the trends to continue. The outlook for yields beyond Q3 is Net debt/EBITDA** 3.0 2.2 1.7 1.6

more uncertain, particularly in Sea as continued supply comes to market. These RNOA (%)** 12.0 8.6 11.5 12.2

ROE (%)** 10.1 12.5 16.2 17.0

positives are offset by Road where we have lowered earnings estimates. This week

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

DSV replaced the CEO of its Road division. We have previously written that framework

§ = Consensus data is provided by Refinitiv Estimates

delivering potential in Road will take time; this might have something to do with * = GAAP or approximated based on GAAP

** = Based on consensus methodology

management change in the business. Our price target moves to DKK2150. e = Morgan Stanley Research estimates

Overweight: Earnings upside potential, execution key. DSV has a credible path to

mid-term upside through Schenker synergies, IT harmonisation, AI-enabled

productivity and network optimisation. However, delivery is complex. The plan

requires the group to integrate its largest acquisition, migrate core systems,

consolidate physical infrastructure and retain customers, all against a volatile

freight backdrop. DSV is best placed in the sector, with a differentiated execution

track record and upside to consensus estimates. We see 6% upside to FY27e

consensus EBIT, yet the shares trade at a discount: 18.6x FY26e EV/EBIT, 13.8x FY27e Morgan Stanley does and seeks to do business with

companies covered in Morgan Stanley Research. As a result,

vs.