A. P. Møller Mærsk (Hold, TP: DKK16300.00) - Necessary solidity
Maersk shares see-sawed intraday as investors absorbed the implied 18% downside to 2023 EBITDA consensus from its guidance. We believe Maersk’s solidity (net USD12.6bn cash position) is key, considering the towering c30% orderbook-to-fleet ratio compressing utilisation from 88% in 2021 to an all-time low of 73% for 2024e. It expects to re-leverage the balance sheet as it continues with share buybacks. We reiterate our HOLD but have raised our target price to DKK16,300 (16,100).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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