Cambi (Buy, TP: NOK23.00) - Gearing up for UK spending cycle
In our view, AMP8 (2025–2030 water utility investment cycle in England and Wales) could trigger a sharp uptick in activity for Cambi (which covers 50% of the UK market), with: 1) Ofwat proposing a 73% increase in spending; and 2) a higher focus on emissions reductions and biosolids handling. As a result, assuming orders take time to materialise, we have lowered our 2025e EBITDA by 7% but raised 2026e by 8%, believing focus should be here (and beyond). We reiterate our BUY and have raised our target price to NOK23 (19).
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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