Eneti Inc (Buy, TP: USD13.00) - Asset values look attractive
With peers already having started to line up work for their wind turbine installation vessel (WTIV) newbuilds, we believe focus for Eneti will be on contracts for its two newbuilds with delivery in 2024–2025e. We see a favourable market outlook for WTIVs from mid-decade. We calculate Eneti is trading at implied EVs for its newbuilds below build cost even as newbuild prices have come up in recent quarters. We reiterate our BUY and have raised our target price to USD13 (11) on a value uplift for the Scorpio Tankers shares sold in Q3 and accretive share buybacks.
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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