Cool Company (Buy, TP: NOK166.00) - Undervalued potential
Despite the spot exposure to what we believe should be a challenging market in 2024–2025 given a hefty delivery schedule only countered by modest export growth, we find Cool Company undervalued, trading at a c12% dividend yield on our 2025 estimates, with a prudent USD43k/day TDFE spot rate assumption. Applying a spot rate equal to the five-year average implies a cNOK22 DPS for 2025, and cNOK180/share on a 12% dividend yield. We reiterate our BUY, but have lowered our target price to NOK166 (180).
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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