A. P. Møller Mærsk (Buy, TP: DKK10600.00) - 2019 set to be better than 2018
Maersk’s 2019 guidance was well below consensus, and implies a poor outlook for liners over the next year, a view with which we disagree. It implies a 5% decline in rates from Q4, while we estimate a 3% improvement due to Q1e Xeneta rates up 10% QOQ and 14% YOY, limited fleet growth and IMO disruption capping effective vessel supply below our forecast for volume growth. We reiterate our BUY and have cut our target price to DKK10,600 (10,800).A.P. Moeller Maersk is an international shipping company. Co.'s operating segments are: Container shipping and related activities which include global container services, inland transportation, manufacturing and repair of containers and container depots, and logistics and forwarding activities; APM terminals; Tankers, offshore and other shipping activities which include tanker shipping of crude oil, oil products and gas, offshore drilling activities and operation of land rigs, supply vessel activities with anchor handling and platform supply vessels, ferry services and door-to-door transportation in Northern Europe; Oil and gas activities; Retail activity; and Shipyards and other activities.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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