DnB Markets - Aker Solutions ASA (AKSOO) Aker Solutions (Hold, TP: NOK45.00) - Stub properly valued

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DnB Markets

Martin Huseby Karlsen

EUR 458.03 For Business Accounts Only

Aker Solutions (Hold, TP: NOK45.00) - Stub properly valued

Q2 was solid, with a 20% EBITDA beat versus consensus and 2023 revenue growth guidance increased to c30% YOY versus c15% previously. However, both were primarily driven by subsea, which has a limited effect on the valuation, as it is partially divested at a fixed price. We have raised our 2024–2025e stub EBITDA by 6%, but in our valuation, this is fully offset by the weaker USD (subsea cash proceeds are in USD). On our estimates, the stub is trading at 2024–2025 EV/EBITDA of 4.5–4.2x, which we consider fair, and we have downgraded to HOLD (BUY) but reiterate our NOK45 target price.

13/07/2023 1 EN

Underlying

Aker Solutions ASA

Aker Solutions is a provider of products, systems and services to the oil and gas industry. Through its subsidiaries, Co. is engaged in the field of engineering, design and technology aimed at improving production and recovery. Co. has 3 reportable segments which are the strategic business units of the group: Engineering Solutions (provides concept and front-end studies to oil companies), Product Solutions (delivers oilfield products for the entire upstream value chain, from reservoir through processing), and Field-Life Solutions (offers a range of services, which has the ultimate objective to increase oil and gas recovery from existing fields and extend the operating life of field assets).

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NO0010716582 Nasdaq Nordic Stockholm Sweden

Provider

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.

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Analysts

Martin Huseby Karlsen

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Aker Solutions (Hold, TP: NOK45.00) - Stub properly valued

Aker Solutions (Hold, TP: NOK40.00) - Probably dead money for a while

Stronger performance than expected

Aker Solutions (Hold, TP: NOK40.00) - Cash conversion in focus for 2024

Metsa Board (Buy, TP: EUR11.00) - Scope for a revaluation

BioArctic (Buy, TP: SEK350.00) - Limited news on EU approval

Surgical Science (Buy, TP: SEK230.00) - Weaker than expected start to 2024

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