DOF Group - Initiation of coverage - Stepping up
With the long-awaited restructuring now complete, the relisted DOF Group offers attractive, leveraged exposure to the oil service upcycle, in our view. Due to a complex corporate structure and silo-based financing, we believe the case revolves around organic deleveraging until its next refinancing (we expect 2025), which our 2025e net debt/EBITDA of 1.7x suggests should be smooth-sailing. The stock is trading at a 2024e EV/EBITDA of 3.8x versus peers’ 5.2x, and we initiate coverage with a BUY and NOK60 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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