Frontline (Hold, TP: NOK66.00) - Biding its time
The recent sell-off leaves the shares trading at 0.9x NAV, but we still see potential for disappointment headed into a seasonally weaker time of the year, coupled with risks of a ramp-up in OPEC+ production amidst SPR draws and new rounds of lockdown. However, a floor to valuation does not appear too far off in our view, given the constructive picture with accelerating scrapping and crude export volumes materialising. We reiterate our HOLD, and have cut our target price to NOK66 (75).
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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