DOF Group (Buy, TP: NOK65.00) - Demonstrating solid potential
Q2 was solid with a 25% EBITDA beat, higher full-year EBITDA guidance, and lowered capex guidance (likely due to phasing). Given that this is a deleveraging case, we consider the small increase in net debt QOQ a negative, although we note it is driven partly by working capital (which should reverse) and FX (which also boosts NOK-reported earnings). We have raised our 2023–2025e EBITDA by 2–5% and find the stock attractively valued at 3.8x 2024e EV/EBITDA, with updated broker quotes suggesting a fair value of NOK72/share. We reiterate our BUY and have raised our target price to NOK65 (60).
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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