DSV Earnings: The Comedown Begins

Narrow-moat DSV’s first-quarter update was a huge climbdown from the highs of 2022, but broadly in line with what we expected. Revenue fell by one third as lower volumes combined with declining freight rates. Management maintained their full-year guidance for EBIT, which represents about a 30% fall at the midpoint on 2022. We also maintain our forecasts and reiterate our DKK 1,120 fair value estimate. We see the shares as fairly valued currently.