Investing.com — BofA Securities in a notice dated Thursday have downgraded the shares of DHL (ETR:) Group and A.P. Moller-Maersk (CSE:) to a “impartial” from a “purchase” score, signaling cautious sentiment within the transportation and logistics sector as the businesses face unsure market situations heading into 2025.

The downgrades replicate BofA analysts’ considerations a few difficult macroeconomic and operational surroundings. 

DHL’s adjustment comes amid expectations of subdued demand and a weakening German financial system. BofA has revised Germany’s GDP development forecasts downward, citing labor market pressures and deteriorating company well being. 

Regardless of the corporate’s shares buying and selling beneath their historic common price-to-earnings ratio, analysts famous restricted prospects for revaluation within the close to time period.

For Maersk, the downgrade is primarily attributed to considerations of oversupply within the ocean freight market. BofA forecasts a provide development of 6% in 2025, probably outpacing demand development, which may result in decrease container freight charges later within the yr. 

The oversupply subject might be exacerbated if geopolitical elements, such because the reopening of the Crimson Sea transport route, enhance international transport capability. 

Whereas Maersk is predicted to take care of strong money returns, BofA anticipates challenges to its earnings efficiency as commerce dynamics evolve.

The downgrades flag broader themes impacting the transport sector, together with tariff uncertainties and shifting e-commerce developments. 

BofA stays cautious concerning the outlook for freight and postal sectors, projecting slower quantity development and constrained pricing energy. 

Nevertheless, analysts proceed to favor shares like DSV and InPost, which retain “purchase” scores, citing their resilience and development potential in a aggressive market.