DHT Holdings (Buy, TP: USD11.40) - Cashing in on earnings capacity
We estimate DHT’s cash-build capacity to equal USD1.7/share (20% of market cap) through 2024, and at the same time generate 15% dividend yield. The stock is trading at a 20% discount to steel values in a market with rising NAVs and very tight supply/demand fundamentals, showcased by a 2.9% VLCC orderbook-to-fleet ratio and latent upside to Chinese demand as crude imports start flowing after Lunar New Year, pushing VLCC demand more in line with mid-size tanker rates. We reiterate our BUY, but have cut our target price to USD11.4 (11.6).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.