Cool Company (Buy, TP: NOK193.00) - Next step – exercising options
We expect 2023–2025 dividend yields of c14%, but see potential upside from newbuild options and charter prospects. Notably, we calculate a 2025e yield of 19% versus our 10% base-case estimate assuming all available vessels are secured at the recent ~USD115k/day fixture. In addition, Cool Company reports charter interest in its two optional newbuilds –discounted at USD234m/vessel versus current broker quotes of USD258m. We reiterate our BUY but have lowered our target price to NOK193 (197).
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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