From Morningstar:

Danish shipping company Maersk reported a significant decline in full-year revenue, down over a third from 2022 levels, and earnings before interest, tax, depreciation, and amortization down 75% from last year. The company’s shares dropped nearly 15%, prompting the suspension of its share buyback program. Despite negativity surrounding the stock, Morningstar analysts give Maersk a 4-star rating and a fair value estimate of £2,016.

Maersk will not benefit from disruption in the Red Sea, as Iran-backed Houthi militants attack commercial ships, causing vessel re-routing. An oversupply of vessels is expected to impact the company’s earnings this year. While Maersk initially performed strongly in the first week of 2024, it has quickly fallen from grace. As of February 13, 2024, shares in Maersk are trading at £1,253.55, contrary to its fair value estimate by Morningstar analysts.



Read more: Maersk: Stock of the Week