DHT Holdings (Buy, TP: USD6.30) - Scouting for potential market upside
DHT Holdings is entering high season with its TC coverage rolling off and adding on interest rate hedges, readying for the potential upside. Retrofitting scrubbers in 2019 will lower earnings potential, but it sees potential for super profits for its scrubber-fitted vessels, which it is looking to capitalise on. VLCC seasonality since 2001 shows August at 52% of the yearly average, while January boasts 130% – implying upside from here. We expect USD36k/day for Q1 2019, and keep our BUY recommendation and USD6.30 target price.
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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