Report
Jørgen Lian
EUR 458.43 For Business Accounts Only

BW LPG (Buy, TP: NOK145.00) - c70% potential upside to 1.0x NAV

2023 has thus far seen constructive shipping demand (up 14% YTD YOY), aided by US volumes, and the latest uptick in freight rates contrasts with concerns about the 13% deliveries this year. Thus, we await shifting investor sentiment as BW LPG continues to screen attractively with an EV/GAV of 0.63x versus the 2018–2019 average of c0.9x, while the current FFA curve implies USD40k+/day for the rest of 2023. We reiterate our BUY and have raised our target price to NOK145 (141).
Underlying
BW LPG Ltd.

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Jørgen Lian

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