Frontline (Buy, TP: NOK89.00) - Accretive 18% fleet growth
We have revised our estimates after the accretive 10-vessel acquisition from Trafigura, and are now 5% above Bloomberg consensus for the Q2 results (due before market open on 27 August). The company made use of its premium share price valuation to strike a fleet deal and increase fleet capacity by c18% while lifting NAV/share by c5%, at an opportune time in our view as IMO 2020 and winter seasonality are approaching for H2 and 2020. We reiterate our BUY recommendation, and have raised our target price to NOK89 (87).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.