DE40: Lower freight rates drag Hapag-Lloyd shares down ⚓

• European markets in mixed mood during Tuesday session
• Hapag Lloyd drops amid weak quarterly results
• Delivery Hero shares temporarily tumbled to all-time lows today

Overall market situation:

European stock indices are trading in a mixed mood during Tuesday's session, however ADRs on U.S. companies listed in Europe indicate that the session's course may improve as trading begins on Wall Street. Investors' attention today turns to the results of U.S. big caps such as Microsoft and Alphabet. 

European companies listed during Tuesday's trading session are mostly up intraday at the moment. Source: xStation 

The German benchmark DE40 is losing more than 0.2% during today's session. The benchmark tested the resistance zone set by historical peaks. Source: xStation 5

News:

Delivery Hero (DHER.DE) has completely exited its online food ordering group Deliveroo, selling all of its shares for £77 million. The company's shares are currently losing more than 6.5%. The company explains the decision by declining demand and a "commitment to disciplined capital allocation."

Shares of Delivery Hero (DHER.DE) temporarily rocketed to all-time lows today. Source: xStation

In line with the company's expectations, Hapag-Lloyd (HLAG.DE) reported a significant drop in earnings for fiscal 2023. This can largely be attributed to lower freight rates resulting from the normalization of global supply chains. The company's shares are currently losing 7%.

Hapag-Lloyd (HLAG.DE) preliminary financial results:

- Revenues: $19.4 billion ($19.61 billion expected)

- EBIT: $2.7 billion ($2.86 billion expected)

- EBITDA: $4.8 billion ($4.97 billion expected)

- "The conflict in the Red Sea negatively affected shipping volumes at the end of the year, as the rerouting of ships around the Cape of Good Hope increased travel times." - Hapag-Lloyd said in releasing preliminary results for 2023.

- Revenues fell to $19.4 billion, mainly due to a lower average freight rate of $1,500/TEU (2022: $2,863/TEU).

Source: xStation

Analyst recommendations:

Morgan Stanley raised its recommendations on Lufthansa (LHA.DE) shares to an "equal-weight" rating. 

Jungheinrich (JUN3.DE) was downgraded to a "neutral" rating by Oddo BHF. Target price at €35.