Shipping firm Maersk keeps defying bearish expectations as shares soar

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInvestorShipping firm Maersk keeps defying bearish expectations as shares soarThe Mideast war tipped supply-demand balance in favour of shipowners, boosting freight rates. But will these tailwinds last?Author of the article:Betting against Maersk has been a painful trade in 2026, with the shares trading around 25 per cent higher than the average 12-month target price. Photo by SERGEI GAPON/AFP via Getty ImagesA.P. Moller-Maersk A/S keeps giving analysts reasons to reconsider their bearish views on its shares.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe stock has surged nearly 60 per cent this year as a boost to freight rates from stronger demand and supply line disruptions has spurred the Danish shipping giant to upgrade its guidance twice over the summer. Maersk has also weathered concerns over fuel costs from the Middle East conflict, and the impact of United States tariffs.Yet analysts broadly remain skeptical. Just one of 26 tracked by Bloomberg has a buy recommendation, with many questioning the durability of elevated freight rates and other tailwinds.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againDisruptions in the Red Sea and Strait of Hormuz have benefited the container shipping industry by tying up vessel capacity and tipping the supply-demand balance in favour of shipowners. As carriers including Maersk resume Red Sea transits, that support is set to fade, with excess capacity seen to weigh on freight rates longer term.HSBC Holdings PLC analyst Parash Jain currently has the lone buy rating on the stock. He acknowledges that freight rate momentum is set to cool, but he sees Maersk as being better placed than other long-haul ocean shipping peers. They include Hapag-Lloyd AG and Cosco Shipping Holdings Co.Key to this, Jain says, is the company’s diverse business mix that includes logistics and terminal services in addition to its ocean vessel operations. These have helped cushion earnings, leaving “Maersk as the sector’s highest-quality defensive cyclical,” Jain said in emailed comments.Elsewhere, Barclays PLC analysts led by Marco Limite on Monday said that the setup for Maersk’s earnings due in November is “extremely strong,” placing the stock on a positive catalyst alert.Still, analysts at JPMorgan Chase & Co, led by Alexia Dogani take a more bearish medium-term view. Following the second-quarter report, which included a guidance upgrade, Dogani called the current narrative on the stock “peak bullishness” and recommended caution, reiterating a price target the equivalent of about US$1,543, less than half of its current share price.“We see current earnings/freight rate levels as unsustainable,” Dogani wrote in an Aug. 31 note. “This strong cash generation near term is unlikely to lead to material shareholder returns as Ocean capex will need to rise to halt its capacity share loss, experienced over the past six years.”Betting against Maersk has been a painful trade in 2026, with the shares trading around 25 per cent higher than the average 12-month target price among analysts tracked by Bloomberg.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Short interest has also declined. According to data from S&P Global Market Intelligence the number of shares out on loan, an indication of short interest, has fallen from around 20 per cent at the beginning of the year to around 10 per cent currently.“Maersk upgraded several times; perhaps somebody is asking whether it can or will happen again,” said Nordnet AB investment economist Per Hansen on why Maersk shares continue to outperform consensus expectations. He added that with analyst views being as bearish as they are, there is “ample room for the shares to run on several upgrades.”—With assistance from James Cone.We apologize, but this video has failed to load.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.