Frontline (Hold, TP: NOK76.00) - Flexing its muscles
Frontline’s Q1 results proved its strong cost discipline with a sizeable earnings beat, which has led us to lift estimates. We have also included the newly acquired VLCCs. We still see persistent headwinds despite reports indicating rising export volumes in the coming weeks, as demand is likely to be tested and vessel oversupply must be worked through. Still, we estimate that Frontline’s available liquidity is sufficient for beefing up its VLCC fleet. We reiterate our HOLD but have raised our target price to NOK76 (68).
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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