Cool Company Minor model adjustments
We have updated our estimates, owing to the Q1 report, and trimmed our 2024–2026e revenue. We still believe contracting of vessels set to come open remains the key to solidifying the valuation. We see upside potential on fixing available TDFE spot earnings days at current TC rates (USD65k/day) and the second newbuild securing a broadly similar rate as the recently announced contract, which would lift our average 2025–2026e dividend yield from c8% to 12%. We do not consider these changes to be material, and we have not changed our BUY recommendation. We have lowered our target price from NOK153 to NOK150.
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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