Cool Company (Buy, TP: NOK151.00) - Potential to raise earnings visibility
The recent seasonal uptick in rates implies a fairly tight market and we believe in a healthy high season, with potential upside due to possibility for disruptions in US LNG exports and a rebound for European demand, widening the arbitrage and offering solid contract opportunities. Assuming Cool Company’s open TFDEs are contracted at the current 1-year TC rate and USD90k/day for the second newbuild, we see an average 2025–2026e NOK18 DPS, implying a ~NOK180 share price at a 10% dividend yield. We reiterate our BUY and have raised our target price to NOK151 (150).
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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