AMSC ASA Minor model adjustments
We have updated our estimates ahead of the Q2 results (due at 07:00 CET on 23 August), owing to increased interest rates and other minor modelling adjustments. AMSC is trading at a 12.1% run-rate dividend yield, an attractive return despite interest rate headwinds. The risk/reward still appears skewed to the upside, as we do not believe the market has fully accounted for the higher distribution capacity from Normand Maximus’s ~USD30m (p.a.) EBITDA contribution. As we forecast quarterly dividends to rise (with a first uptick to USD0.15/share in Q4 2023e), we calculate the stock is trading at a 15.1% yield on 2024–2025e dividends. We do not consider these estimate changes to be material, and we have not changed our BUY recommendation. We have lowered our target price to NOK52 (55).American Shipping Company is a U.S. ship owning and lease finance company with focus on building a premier ownership position. Through its subsidiaries, Co. is engaged in the purchase and bareboat chartering of product tankers, shuttle tankers, and other vessels to operators and end users in the Jones Act market. Co. owns ten modern 46,000 dwt MR product tankers that were built by Aker Philadelphia Shipyard. All ten vessels are on long term fixed rate bareboat charters with Overseas Shipholding Group Inc. Co. also holds an equity stake in Philly Tankers AS/LLC, founded in 2014 to build two new product tankers at Aker Philadelphia Shipyard.
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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