Cadeler (Buy, TP: NOK55.00) - Focus remains on out years
We see limited impact from the below-consensus 2023 guidance presented with last week’s 2022 results, as in our view the investment case is about 2025 onwards, when the O-classes are upgraded and the four newbuilds put into operation. In this note, we explore the incremental earnings potential from Cadeler’s expansion into ‘T&I services’ for its two foundation newbuilds, which we believe could increase vessel EBITDA by 50–100% versus a ‘vessel only’ scope, though with some additional risks. We reiterate our BUY and NOK55 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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