BW LPG (Buy, TP: NOK147.00) - Still lagging behind peers
We expect continued strong earnings in H2, but see potential headwinds from mean-reverting US demand and the full effect of the heavy 2023 delivery schedule. However, the forward market is still indicating strong VLGC earnings potential for 2024 and 2025 of cUSD50k/day, providing possible upside to our 2024–2025e EBITDA. Also, we believe the announced work towards a dual US listing could help reduce the valuation discount to peers. We reiterate our BUY but have trimmed our target price to NOK147 (148).
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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