Plain Sailing for Kuehne + Nagel in First Half

Narrow-moat logistics giant Kuehne + Nagel delivered an impressive set of first-half results. Revenue increased 35% year over year for the half year, and up 48% for the quarter, albeit against a particularly weak comparative period. EBIT doubled year over year as the company benefited from “uniquely high consumer demand combined with supply chain uncertainty.” We expect to update our near-term forecasts on the back of this additional data point, but believe any resulting changes to our CHF 160 fair value estimate will not alter our stance on the stock. With the share price having doubled in just the last 12 months, we do not see any value in it at this time.