Frontline (Hold, TP: NOK69.00) - Market weakness persists
Due to recent market weakness, we have cut our 2022e EBITDA by 15%, but believe Frontline is well situated to navigate the trough, as we calculate Q4 EBITDA of USD60m – 5% above consensus. Despite an ageing fleet, we remain conservative on the near-term outlook, given our estimated fleet growth of ~6% since 2019, which would require an additional ~2m barrels of crude exports, all else equal. We reiterate our HOLD, but have raised our target price to NOK69 (66).
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.