DnB Markets - Cambi (CAMBI) Cambi (Buy, TP: NOK8.00) - Tailwinds ahead

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DnB Markets

Martin Hoang Nguyen

EUR 91.98 For Business Accounts Only

Cambi (Buy, TP: NOK8.00) - Tailwinds ahead

We believe Q4 could mark the start of strong revenue and earnings growth QOQ for the next few quarters. We see a continued strong backlog build, with NOK490m–590m in announced equipment order intake lifting the backlog to above NOK1bn in Q4e. We reiterate our BUY and have increased our target price to NOK8 (7) on estimate revisions.

21/02/2023 1 EN

Underlying

Cambi

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NO0010078850 Oslo Bors Norway

Provider

DnB Markets

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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Analysts

Martin Hoang Nguyen

Other Reports on these Companies

DnB Markets

Cambi Minor model adjustments

We have updated our estimates ahead of Cambi’s Q1 report, due on 7 May. We forecast EBITDA of NOK64m and a cash position of NOK383m. Our modelled order intake is NOK298m, primarily reflecting announced orders in Hawaii and Norway. We do not consider these changes to be material, and have not changed our BUY recommendation or NOK20 target price.

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April 23, 2024 April 23, 2024 1 EN

DnB Markets

Cambi (Buy, TP: NOK20.00) - Investment case intact

Q4 EBITDA was NOK59m, NOK14m below our NOK72m forecast due to bonus accruals not included in our estimates. Despite slow order intake (book-to-bill of 0.2x), the backlog coverage was decent at 78% for 2024e, 53% for 2025e and 30% for 2026e (excluding soil sales), but implies additional backlog is needed to maintain current activity. We reiterate our BUY and NOK20 target price, and find the stock attractive at a 2024–2025e EV/EBITDA of 8.8–8.6x versus its waste management and recycling peer group at ~12x.

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March 8, 2024 March 8, 2024 1 EN

DnB Markets

Cambi (Buy, TP: NOK20.00) - Order outlook in focus

We expect Cambi’s high activity to continue and forecast Q4 EBITDA of NOK72m. After a few quarters with very strong order intake, Cambi did not announce any orders in Q4. Thus, we believe investor focus will be centred around the outlook for the new orders needed for the current high activity to be sustained beyond 2024e. We reiterate our BUY and NOK20 target price, corresponding to a blended average 2024–2025e EV/EBITDA of 12x, and see the stock as attractive at ~10x versus its waste management and recycling peer group at ~12x.

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January 24, 2024 January 24, 2024 1 EN

Castellum (Hold, TP: SEK135.00) - Unconvincing Q1 results

We have downgraded to HOLD (BUY) and trimmed our target price to SEK135 (136) following rather soft Q1 results that showed a risk in vacancy adding concern about the rental market outlook. We consider the stock fully valued, given only an 10% NAV discount (adjusted for Entra at market value) and its soft FFOPS growth outlook.

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19h / 56m 19h / 56m 1 EN

Douglas Lindahl

Douglas Lindahl

Lindab International (Buy, TP: SEK244.00) - A bump in the road

Lindab’s markets remain under pressure, but comparables are becoming easier, and we expect positive organic growth in H2 2024. Due to the weak Q1, we have reduced our 2024–2026e adj. EBIT by c5% on average and our target price to SEK244 (250), but reiterate our BUY. We expect earnings growth from Q4 onwards, and see upside potential to our target price.

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23h / 54m 23h / 54m 1 EN

Helene Kvilhaug Brøndbo

Helene Kvilhaug Brøndbo

Hexagon Purus (Hold, TP: NOK7.00) - On track

The Q1 report came as a relief to the capital markets. With decent quarterly results, capacity expansion on track, and a still-supportive demand outlook, the industrial business case looks intact. That said, we note the still-high funding need. We reiterate our HOLD, but have raised our target price to NOK7 (6) on lower dilutive effects from assumed further capital raises after Friday’s share price rally. The stock continues to trade at an attractive 40–50% discount to other hydrogen equipment suppliers on EV/sales.

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May 5, 2024 May 5, 2024 1 EN

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Cambi (Buy, TP: NOK8.00) - Tailwinds ahead

Cambi Minor model adjustments

Cambi (Buy, TP: NOK20.00) - Investment case intact

Cambi (Buy, TP: NOK20.00) - Order outlook in focus

Castellum (Hold, TP: SEK135.00) - Unconvincing Q1 results

Lindab International (Buy, TP: SEK244.00) - A bump in the road

Hexagon Purus (Hold, TP: NOK7.00) - On track

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