Kuehne + Nagel Initiated at Sector Perform at RBC on 'Firm' Valuation, Freight Rate Risks

06:27 AM EDT, 10/16/2026 (MT Newswires) -- RBC Capital Markets started coverage of Kuehne+Nagel (KNIN.SW) with a sector perform rating and a price target of 235 francs, saying attractions are accounted for in the company's "firm" valuation amid expected freight rate pressures starting in full-year 2027. "We view K+N as a high quality and prudently managed company, well positioned to deliver on medium-term top-line and cost ambitions. Our proprietary supply-demand analysis suggests the current tailwind from freight rates will reverse (with our estimates close to consensus over FY26E-FY28E, although ahead beyond). We view K+N as relatively fully valued on our forecasts, trading on >20x PE throughout FY26E-FY28E. We forecast an 8% EPS CAGR over FY26E-FY30E, below peers," analysts said Thursday. The research firm believes elevated freight rates present a near-term "tactical attraction" for second-half 2026 gross profit/unit prospects. However, projected ocean shipping overcapacity could weigh on rates starting in 2027. "We estimate a ~7% annual average increase in supply growth vs a ~3% p.a. increase in demand growth in ocean freight over FY26E-FY30E. The supply-demand outlook is more constructive in Air. However, air freight rates jumped in FY26E, partly on Middle East disruption, and we allow for a partial reversal of this in FY27E," RBC wrote.