Borr Drilling (Buy, TP: NOK110.00) - Reinstating recommendation
Along with other offshore drillers, Borr Drilling has sold off recently, being down 47% since late July. At the same time, the jackup market keeps going in the right direction, unlike the sluggish deepwater market. We see leading-edge dayrates allowing an annual EBITDA contribution of USD10m–15m+ per rig, versus the current implied valuation of USD101m per premium jackup, which we consider compelling should all rigs be put to work. We reinstate a recommendation on Borr Drilling with a BUY (NO REC) and NOK110 target price.
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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