Maersk Earnings: Tough Year Ahead in Shipping

It's difficult to say that shipping giant Maersk had a "good" first quarter when profits have fallen more than 90% year over year, but relative to previous expectations, that is indeed the case. Ongoing Red Sea disruptions have papered over the cracks caused by oversupply in container shipping markets, leading to a better than expected result for the period. Management has tightened its guidance for the full year, raising the lower end of the range, but this points to at best zero EBIT for 2024. We maintain our DKK 16,935 fair value estimate and believe the shares offer attractive upside for investors willing to look past the current malaise.