AP Moller-Maersk stock upgraded following 20% slump in share price

9 August 2024

10:50 GMT | Updated 9 August 2024

The Copenhagen-listed liner giant's stock has dropped as low as DKK 10400 per share, down more than 20% from its peak earlier this year. However, analysts at Jefferies have upgraded their rating on the stock to "buy", citing the company's strong fundamentals and its recent cost-cutting measures.

"AP Moller-Maersk is a well-managed company with a strong track record," said Jefferies analyst Lars Jensen. "The recent share price decline has created a buying opportunity for investors."

Jensen said that he believes AP Moller-Maersk is well-positioned to benefit from the ongoing recovery in the global economy. "The company has a strong order book and is benefiting from the recent increase in freight rates," he said.

AP Moller-Maersk has also been taking steps to reduce its costs. The company recently announced plans to cut 2,000 jobs and to sell off some of its non-core assets.

"These cost-cutting measures will help to improve the company's profitability and make it more competitive," said Jensen.

Analysts at other banks have also upgraded their ratings on AP Moller-Maersk stock in recent weeks. Goldman Sachs upgraded the stock to "buy" from "neutral" on Friday, while Morgan Stanley upgraded the stock to "overweight" from "equal-weight" on Monday.