Summary
- Maersk’s improved guidance stems from higher shipping rates driven by the Middle East conflict and strong cargo demand, though analysts at Bernstein warned of an oversupply threat, according to a note by analyst Alex Irving.
- Global air cargo demand rose 6% in May, with all regions growing except the Middle East, which fell 8.9% due to the war, the International Air Transport Association reported.
- Jefferies upgraded Mercedes-Benz to buy from hold, citing the German carmaker’s progress on fixed-cost reductions and leading position among German peers on restructuring and capital allocation.
- Berenberg analysts said Ferrari’s core business model and product momentum appear the strongest since they initiated coverage in 2025, with a possible guidance upgrade in the third quarter.
Maersk shares opened 3.7% higher at 16,470 kroner on Tuesday after the Danish shipping group issued improved guidance that Bernstein attributed primarily to higher shipping rates driven by the Middle East conflict and fuel surcharges. The U.S. brokerage said strong cargo demand has also contributed, with freight rates rising even as fuel prices fell. Analyst Alex Irving said in a note that it isn’t clear whether the demand reflects genuine economic growth or companies pulling orders forward to avoid upcoming tariffs and surcharges. Maersk’s upgraded volume growth outlook suggests a mix of both, he said. Bernstein added that the long-term threat of oversupply looms over the industry, as some shipping lines continue to order massive new vessels that could hurt future profitability.
Global air cargo demand rose 6% in May compared with a year earlier, the International Air Transport Association said, with growth recorded in all regions except the Middle East. The strongest region was Africa, with 13.3% growth as measured in cargo ton-kilometers, followed by North America, which grew 10.5%. Demand in the Middle East was down 8.9% in May due to the war, IATA said. IATA Director General Willie Walsh said the May performance and macroeconomic factors give “cautious optimism for air cargo’s prospects over the remainder of the year.”
Jefferies analysts upgraded Mercedes-Benz to buy from hold, writing that the German carmaker is ahead of peers on cost-cutting. They noted that Mercedes has achieved 80% of its fixed-cost reduction target but is running behind on material costs. The company is well on its way to cutting investments to around 11 billion euros by 2027, the analysts added. Overall, they said Mercedes leads its German peers on restructuring, product launches and capital allocation. The analysts cut their price target to 52 euros from 60 euros. Shares fell 1% to 42.93 euros.
Berenberg analysts said Ferrari’s core business model and product momentum appear to be the strongest since they initiated coverage of the stock in 2025. After attending an investor day, they wrote that some indications suggest the second quarter is shaping up well. The Italian carmaker could opt to upgrade its 2026 guidance in the third quarter rather than the second, which would ensure management has more confidence in its ability to meet or beat its outlook, they said. Shares rose 0.3% to 323.15 euros.
CGS International upgraded Airports of Thailand to hold from reduce, with analyst Thanapol Jiratanaki saying the company’s earnings outlook appears brighter after unveiling concrete plans to boost aeronautical revenue and improve passenger traffic. The Thai airport operator intends to increase its landing and parking charges and adjust other fees, which should boost its overall top line, the analyst said. Higher passenger service charges should also enhance earnings growth meaningfully from fiscal fourth quarter, he added. He raised his fiscal 2027-2028 EPS projections by 6.9% to 8.7% to reflect stronger passenger volumes and the higher fees, and lifted his target price to 64 baht from 50 baht. Shares last closed at 63.25 baht.