BW LPG (Buy, TP: NOK199.00) - US listed, but still at a discount
Strong US inventories have supported the US-Far East arbitrage, currently implying a cUSD90k/day rate. Thus, spot rates have persistently stayed above USD50k/day, and we believe 2024 will be another solid year for VLGC earnings. We estimate BW LPG will distribute c16% of its market cap in 2024 DPS. With its US listing in place, we still see multiples expansion potential, with the peer group trading at c1.10x P/NAV, which would imply a cNOK200 share price for BW LPG. We reiterate our BUY and have raised our target price to NOK199 (196).
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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