Maersk rose as much as 2.9 percent to 44,960 kroner, the highest since April 4. Shares in the Copenhagen-based company gained 1.7 percent to 44,440 kroner at 10:16 a.m. in the Danish capital. The volume was 33 percent of the three-month daily average.
Maersk joined forces last month with its two main competitors, agreeing to pool 255 vessels, to cut costs and end five years of overcapacity that depressed freight rates. The P3 agreement, coupled with initial success in raising rates this month, cuts risks to Maersk’s profitability, Citigroup said.
“Spot market activity points to greater initial success with the July 1 rate increase than we had expected,” the bank said in a note to investors. “We expect vessel efficiencies from the P3 alliance to help under the profitability of Maersk Line from the second quarter of 2014 onwards.”
The bank raised its recommendation on Maersk to neutral from sell and increased its target price by 11 percent, to 40,000 kroner.
– Frances Schwartzkopff, Copyright 2013 Bloomberg.