Eneti Inc (Buy, TP: USD13.00) - Waiting for newbuild deliveries
Q4 was strong, partly due to timing issues, while 2023e appears more challenging due to higher costs. We have cut our 2023e EBITDA to USD16m (from USD34m), well below consensus of USD45m. Despite soft earnings expected this year, we believe the equity story is about the longer-term earnings potential (when all newbuilds are operational in 2025e) and consider it intact on the back of strong market fundamentals. The current share price implies an EV per WTIV newbuild of USD324m, largely in line with the actual cost, but c20% below where we believe current newbuild prices are. We reiterate our BUY and USD13 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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