BW LPG (Buy, TP: NOK104.00) - Abundant cash position
We are positive on the near-term market outlook following the Q1 report, and have raised our 2022e adj. EBITDA by 5%. We believe the cash position should more than support the newly proposed dividend policy, which targets a 75% dividend payout ratio when net leverage is below 30%. In our view, cash could also find its way to the shareholders through buybacks, as BW LPG is trading at an attractive EV/GAV of 0.61x. We reiterate our BUY and raise target price to NOK104 (96).
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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