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Maersk (MAERSK; Baa1/BBB+; S) FY Guidance Boost

TRANSPORTATION

Disruptions benefiting Maersk, some sizeable upgrades here;FY24 (same as CY) EBITDA guidance now $7-9b (prev. $4-6b, c$6.2b), EBIT $1-3b (prev. -$2-flat, c$430m) & FCF of >+$1b (prev. >-$2b, c-$2.1b).

"On the back of continued strong container market demand and the disruption caused by the ongoing crisis in the Red Sea [Maersk] now also sees signs of further port congestions, especially in Asia and the Middle East, and additional increase in container freight rates...The ongoing threats to commercial vessels in the Red Sea and growing supply chain bottlenecks indicate that this situation won't improve soon. "


It's bucking our take from 1Q (below) which was warning of weaker fundamentals. Our view that the curve screens rich is unch; outside the €26s, duration is long & leaves investors exposed to fundamentals. Higher rated airports still trade inside it (31s Z+89, 32s Z+99, 36s Z+127).


https://marketnews.com/maersk-maersk-baa1-bbb-s-1q...

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