Cadeler (Buy, TP: NOK60.00) - Starting to walk the foundation talk
With Cadeler being vocal about stepping into the business of ‘T&I services’ for foundation installation, we believe the contract announced last week with Orsted for Hornsea 3 is a key milestone for the company. In addition to providing the foundation installation vessel, it is set to execute multiple other services, likely totalling cEUR500m. It also announced that it will install 50% of the turbines at the project. We previously assigned some value to the prospect of it taking on additional services, while we now de-risk this valuation component, causing us to raise our target price to NOK60 (55) and reiterate our BUY.
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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