Cool Company (Buy, TP: NOK180.00) - Potential to unlock value
The spot perception of Cool Company is weighing on its valuation. We find the stock attractively valued, considering the low hurdle to switch investor focus from spot rate concerns to steady yield and appealing value. With the potential for favourable long-term contracts diminishing, we highlight execution risk as the main risk factor to our valuation as we approach an uncertain 2024–2025 on considerable vessel deliveries outpacing demand growth prospects. We reiterate our BUY, but have cut our target price to NOK180 (190).
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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