BW LPG (Buy, TP: NOK114.00) - Still-attractive energy shipper
Although a daunting 2023 delivery schedule could weigh on 2023e freight rates, we find support in a constructive one-year timecharter market, which in our view indicates c25% potential upside to our 2023e earnings, if it materialises. We still believe BW LPG provides attractive energy shipping exposure, with its EV/GAV at 0.74x, leaving further upside potential to its underlying values and comparing favourably to its 2018–2019 average of c0.9x. We reiterate our BUY but have cut our target price to NOK114 (127) on the weaker USDNOK.
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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