DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Håkon Astrup

B2Holding (Buy, TP: NOK6.00) - Trends as expected

Despite the muted near-term outlook with risks of portfolio impairments and subsequent covenant breaches, the current valuation puts limited emphasis on longer-term value, in our view. Following a change of analyst, we reiterate our BUY, but have reduced our target price to NOK6 (9) reflecting our estimate cuts to account for a poorer collection performance in a more challenging environment and expected portfolio impairments.

Håkon Astrup

Axactor (Buy, TP: NOK10.00) - Challenging quarters ahead

We see a risk of Axactor breaching its covenants in Q2 as a result of negative portfolio revaluations to reflect the weaker collection outlook and abrupt macroeconomic worsening. Despite the challenging near-term outlook, we reiterate our BUY, while we have cut our target price to NOK10 (25) following reduced earnings estimates and a change of analyst.

Nicolay Dyvik

Hunter Group (Buy, TP: NOK4.80) - Attractive risk/reward

Based on our new sector rate forecasts, and adjusted for Hunter’s announced timecharters and Q2 spot rate guidance, we estimate EPS of USD0.17 (NOK1.7) through our forecast horizon – corresponding to 46% of the current market cap. The potential refinancing is guided to take run-rate cash breakeven to USD20.5k/day, and we believe the company remains committed to returning capital to its shareholders. We reiterate our BUY and NOK4.8 target price.

Simen Mortensen

Citycon adjusts dividend, alleged insider trading, and acquisitions

This week: Citycon adjusted its dividend to further boost its long-term financial stability and strengthen its credit risk profile; two senior executives at Balder were detained on suspicion of insider trading; and Atrium Ljungberg acquired an office property. SBB divests school property in Uppsala. The weighted average implied EBITDA yields on our covered stocks are 3.83% for 2020e and 4.02% for 2021e.

Jon Masdal

Weekly news, topics & discussions

The Norwegian parliament’s finance committee is set to deliver its recommendations for temporary changes to the petroleum tax system next week. Market talk suggests improved terms, which we believe could lower the break-even level on a standard project previously at USD40/bbl to USD31/bbl with delayed tax payments and similar taxable amounts. We initiated coverage on Lundin Energy this week with a HOLD; we believe the company has great assets, but needs discoveries.

Håkon Astrup

B2Holding (Buy, TP: NOK6.00) - Trends as expected

Despite the muted near-term outlook with risks of portfolio impairments and subsequent covenant breaches, the current valuation puts limited emphasis on longer-term value, in our view. Following a change of analyst, we reiterate our BUY, but have reduced our target price to NOK6 (9) reflecting our estimate cuts to account for a poorer collection performance in a more challenging environment and expected portfolio impairments.

Håkon Astrup

Axactor (Buy, TP: NOK10.00) - Challenging quarters ahead

We see a risk of Axactor breaching its covenants in Q2 as a result of negative portfolio revaluations to reflect the weaker collection outlook and abrupt macroeconomic worsening. Despite the challenging near-term outlook, we reiterate our BUY, while we have cut our target price to NOK10 (25) following reduced earnings estimates and a change of analyst.

Nicolay Dyvik

Hunter Group (Buy, TP: NOK4.80) - Attractive risk/reward

Based on our new sector rate forecasts, and adjusted for Hunter’s announced timecharters and Q2 spot rate guidance, we estimate EPS of USD0.17 (NOK1.7) through our forecast horizon – corresponding to 46% of the current market cap. The potential refinancing is guided to take run-rate cash breakeven to USD20.5k/day, and we believe the company remains committed to returning capital to its shareholders. We reiterate our BUY and NOK4.8 target price.

Simen Mortensen

Citycon adjusts dividend, alleged insider trading, and acquisitions

This week: Citycon adjusted its dividend to further boost its long-term financial stability and strengthen its credit risk profile; two senior executives at Balder were detained on suspicion of insider trading; and Atrium Ljungberg acquired an office property. SBB divests school property in Uppsala. The weighted average implied EBITDA yields on our covered stocks are 3.83% for 2020e and 4.02% for 2021e.

Jon Masdal

Weekly news, topics & discussions

The Norwegian parliament’s finance committee is set to deliver its recommendations for temporary changes to the petroleum tax system next week. Market talk suggests improved terms, which we believe could lower the break-even level on a standard project previously at USD40/bbl to USD31/bbl with delayed tax payments and similar taxable amounts. We initiated coverage on Lundin Energy this week with a HOLD; we believe the company has great assets, but needs discoveries.

Mikael Løkken Gjerding

Refinancing challenges persist

Teekay Offshore Partners LP (TOO US) - Refinancing challenges persist (13 pages)

Martin Børter

May lean on its backlog

Höegh LNG Holdings Ltd (HLNG NO) - May lean on its backlog (11 pages)

Martin Børter

Strong liquidity through a challenging market

Klaveness Ship Holding AS () - Strong liquidity through a challenging market (10 pages)

Martin Børter

New set of risks

Golar LNG Partners LP (GMLP US) - New set of risks (10 pages)

Thomas Larsen

Hold your breath

Seadrill Ltd (SDRL NO) - Hold your breath (7 pages)

Kyrre Aamdal

Short Comment: Norway’s government increases spending

Short Comment: Norway’s government increases spending (2 pages)

Knut Magnussen

US Update: Elections could lead to higher taxation

US Update: Elections could lead to higher taxation (2 pages)

Kjersti Haugland

Preview: ECB set to increase PEPP

Preview: ECB set to increase PEPP (2 pages)

FICC Analyst FICC Analyst

Morgenrapport 28 mai: Finanspolitiske pakker og storpolitikk

Morgenrapport 28 mai: Finanspolitiske pakker og storpolitikk (2 pages)

Oddmund Berg

Short comment Norway: Retail sales show signs of resistance

Short comment Norway: Retail sales show signs of resistance (2 pages)

Ole-Andreas Krohn

Morning Presentation

Nicolay Dyvik ...
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Stefan Gauffin

Northern Lights

Ole-Andreas Krohn

Morning Presentation

Nicolay Dyvik ...
  • Ole-Andreas Krohn
  • Simen Mortensen
  • Stefan Gauffin

Northern Lights

Ole-Andreas Krohn

Morning Presentation

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