Hapag-Lloyd to Benefit from Stronger Freight Rates, Demand in Near Term

Dow Jones
08/17

0752 GMT - Hapag-Lloyd recently reported second-quarter results, on the back of which Citi has raised its forecasts. The bank expects stronger freight rates and demand to offset higher fuel costs. Citi models a 16% quarter-on-quarter increase in third-quarter freight rate with EBIT at $941 million. Citi's 2026-27-28 EBIT forecast stands at $1.25 billion, $35 million and a loss of $480 million respectively, above company 2026 EBIT guidance of $100 million to $1.1 billion, reflecting the improved rate and demand environment. Consensus EBIT stands at $821 million for 2026, a loss of $63 million in 2027 and a loss of $149 million in 2028. The bank retains its sell rating on the stock and lifts its target price to 115 euros from 101 euros. Shares rise 3.8% to 137.40 euros.

 

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