Cadeler (Buy, TP: NOK45.00) - A rare combination
The combination of solid contract coverage, bright outlook (for further backlog at solid dayrates) and low earnings multiples is a rarity for asset-heavy industries. With the announcements last week, Cadeler’s current two vessels (O-class) are now close to fully booked (O-class) through 2024 and its full fleet (four vessels) has c50% revenue coverage in 2025e. Due to scheduled upgrades of its O-class vessels in 2023–2024 and newbuilds due to become operational in 2025, we believe valuation focus should be on 2025e, for which it is trading at an EV/EBITDA of 4.0x. We reiterate our BUY and NOK45 target price.
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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