Report
Jørgen Lian
EUR 87.55 For Business Accounts Only

2020 Bulkers (Hold, TP: NOK116.00) - Tempered for now

We believe the outlook for the dry bulk segment remains muted near-term, entailing downside risk to current asset valuations (we see ~25% downside risk on 2010–2024 EV/EBITDA multiples). With 2020 Bulkers’ current valuation (0.87x EV/GAV), its highly transactable assets and robust set-up, we believe this should cap its downside potential near-term and that the risk/reward appears balanced. Hence, we reiterate our HOLD but have lowered our target price to NOK116 (125).
Underlying
2020 Bulkers Ltd

2020 Bulkers Ltd is a Bermuda-based owner and operator of cargo ships. The Company owns as subsidiaries 2020 Bulkers I Inc and 2020 Bulkers II Inc in Liberia. Entities are parts to shipbuilding contract with New Times Shipbuilding Co. Ltd. for construction and delivery of Newcastlemax dry bulk vessel. The Company's main shareholders comprise Magni Partners and Titan Opportunities Fund.

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Jørgen Lian

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