Company Reports

Hapag-Lloyd boosted spending in the past three years across its business. In liner services, by far the dominant segment with 99% of revenue, the firm aims to grow capacity slightly faster than the market. The company is also investing outside of its core business to provide nonocean solutions to customers, including terminal services at ports and inland services once docked.

We are initiating coverage of Hapag-Lloyd with a no-moat rating and a EUR 115 fair value estimate. Although Hapag-Lloyd is one of the major global shipping companies and holds the leading position in the second-largest maritime alliance, THE Alliance, we assign it a no-moat rating given its inability to leverage that position to carve out a competitive advantage or consistently earn excess returns on capital.

We are initiating coverage of Hapag-Lloyd with a no-moat rating and a EUR 115 fair value estimate. Although Hapag-Lloyd is one of the major global shipping companies and holds the leading position in the second-largest maritime alliance, THE Alliance, we assign it a no-moat rating given its inability to leverage that position to carve out a competitive advantage or consistently earn excess returns on capital.

Hapag-Lloyd boosted spending in the past three years across its business. In liner services, by far the dominant segment with 99% of revenue, the firm aims to grow capacity slightly faster than the market. The company is also investing outside of its core business to provide nonocean solutions to customers, including terminal services at ports and inland services once docked.