The main message from the bank is that the market is too pessimistic. Deutsche Bank said that fears around the impact of artificial intelligence and increased competition from Amazon are “clearly exaggerated”.
Analyst Harishankar Ramamurthy noted that DHL is now backed by several strong factors at once: a €1 billion cost-cutting program, a global logistics network and sustainable pricing power even in volatile global trade.
He said the company is adapting well to a “complex and uncertain” macroeconomic and geopolitical environment.
Financials better than expected, but outlook cautious
The upgrade comes shortly after DHL’s strong quarterly report. Operating profit exceeded forecasts thanks to capacity optimization and cost reductions.
However, the company remains cautious in its outlook due to geopolitical risks, including tensions in the Middle East. According to the company, higher fuel costs were offset by higher tariffs for customers.
Despite today’s growth, DHL shares remain about 8% below their February highs. Earlier, the quotes were pressured by concerns that the logistics business could suffer due to the development of AI and the expansion of Amazon’s logistics services.
However, Deutsche Bank believes that this negative scenario is overestimated. The bank also sees potential for efficiency gains in DHL’s freight segment, although it recognizes that the company has yet to prove that it can fully unlock this potential.
