Investing.com -- DHL (ETR:DHLn) has emerged as Bernstein's top logistics stock pick for 2025, reflecting its favorable valuation and positioning within the evolving European logistics sector.
Bernstein analysts flag the potential for a recovery in freight volumes and point to DHL's strategic advantages, particularly its leverage to global trade and e-commerce growth.
They argue that the company's valuation is currently too low to ignore, considering its diverse revenue streams and high dividend yield of over 5%.
After enduring a cyclical downturn in recent years, the logistics industry is poised for a rebound, with DHL expected to benefit significantly.
Freight volumes, still below pre-pandemic levels, are anticipated to recover gradually in line with industrial activity.
DHL is well-positioned for this upswing due to its robust infrastructure and dominance in express and forwarding markets.
Bernstein underscores DHL's earnings potential from its global logistics operations, where structural trends like increasing supply chain complexity favor established players.
Key to DHL's outlook is its ability to navigate near-term challenges, such as sluggish demand in industrial verticals and uncertainties tied to geopolitical developments.
Despite these headwinds, the company's comprehensive service portfolio and exposure to e-commerce—which continues to expand its share of global retail—support a positive long-term view.
DHL's focus on operational efficiency and investments further strengthen its competitive position.
Bernstein's analysis comes amid broader shifts in the logistics sector, including consolidation among freight forwarders and rising complexity in global supply chains.
While competitors like DSV remain strong contenders, DHL's current valuation offers an attractive entry point for investors seeking exposure to the anticipated recovery.
The analysts conclude that DHL's discounted valuation does not fully reflect its potential for growth, making it a standout pick for 2025.
The analysts underscore the company’s alignment with cyclical and structural tailwinds, providing a compelling case for its position as a leader in the European logistics market.