BofA Securities raised its forecast for the container shipping industry for 2026 due to short-term supply tightness caused by the volatile situation in the Middle East and the delayed reopening of the Red Sea. They increased the average net profit forecast for the industry by USD1.2 billion and the average target price for stocks by 15%. However, despite this adjustment, BofA maintains a negative outlook on the container shipping sector, expecting a general downtrend in earnings per share (EPS) and dividends this year. The firm notes that the current price-to-book value (PBV) valuation is only at a 10% discount compared to the peak of the Red Sea crisis, while the benefits to the industry are significantly less than during that time.
