Aker Solutions (Buy, TP: NOK57.00) - Well set for 2019
Ahead of the Q4 results, we are just below consensus EBITDA, and forecast a book-to-bill of 0.76x for Q4 2018, but still just above 1.0x for 2018. Despite our below-consensus sector view, we see less risk to consensus estimates for Aker Solutions than for other oil service names. We like its North Sea exposure and, with the subsea market at cyclical lows, we believe limited optionality of recovery is reflected in the share price, which we find compelling. We keep our BUY recommendation and target price of NOK57.Akastor is a provider of products, systems and services to the oil and gas industry. Co. has three reportable segments: Engineering Solutions, which provides concept and front-end studies to oil companies; Product Solutions, which delivers oilfield products for the entire upstream value chain, from reservoir through processing and also includes Subsea, Drilling, Umbilicals and Process Systems; and Field-Life Solutions, which provides a range of services to increase oil and gas recovery from existing fields and extend the operating life of field assets. This segment also consists of two business areas: Maintenance, Modifications and Operations and Oilfield Services and Marine Assets.
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.
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