DHT Holdings Minor model adjustments
We have updated our estimates based on Q1 actuals, QTD fixtures (65% of spot days at USD70.3k/day), and revised fuel spreads. We do not consider these changes to be material, and we have not changed our BUY recommendation. The share price dropped 8.5% yesterday, despite Q1 results being in line with consensus expectations and QTD fixtures implying upside potential to near-term consensus. We expect a c18% dividend yield for 2023–2025e (plus an active USD100m buyback programme, equalling c8% of the market cap), and the stock is trading at 0.8x P/NAV which we consider overly discounted in light of exceptionally tight supply-side fundamentals. We have lowered our target price to USD11.9 (12.3), reflecting asset values derived from our sector rate forecasts 1-year forward.
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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