BW LPG (Buy, TP: NOK127.00) - Energy shipping attractively priced
Ahead of the Q3 results, we have raised our 2022e EBITDA by 11%, driven by positive earnings momentum. Several countries are seeking cheaper alternatives to LNG, which should boost near-term demand for LPG. Hence, we see potential for the valuation gap – unwarranted in our view, with EV/GAV at 0.62x and P/NAV at 0.57x – to narrow, implying significant potential upside to the share price. We reiterate our BUY and have raised our target price to NOK127 (110), largely due to currency appreciation.
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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