From Morningstar:

Maersk reported a significant decrease in revenue and EBITDA in 2022, causing shares to fall by 15%. They also informed investors that Red Sea disruptions would not significantly benefit the company and an oversupply of vessels will impact earnings this year. Key Morningstar Metrics for Maersk include Current Price of 10,890 DKK and Morningstar Economic Moat Rating of None.

The stock suspension and wide guidance range for 2024 have caused uncertainty, driving share buybacks to pause. Despite investor fears, Morngingstar maintains that Negativity is already priced into the current shares. Although shipping companies have been performing well, the market remains oversupplied. Maersk’s towage business, Svitzer, will also be spun off.

There’s cautious optimism for Maersk after soaring freight rates in 2024 following the Red Sea attacks. While it has helped to some degree, the disruptions will not solve the problem of oversupply. The shipping market will continue to have depressed shipping rates for some time, according to Field. Maersk’s towage business, Svitzer, will also be spun off and the company is headed towards a more simplified shipping and logistics model.



Read more: Maersk Shares Undervalued After Earnings Slide