Golden Ocean (Buy, TP: NOK149.00) - The Q1 trough now behind us
Q1 saw a rapid rebound in sentiment despite benchmark Capesize rates averaging USD9.1k/day, reflected in Q2-Q4 FFAs climbing 40% to USD20.7k/day and 5-year secondhand values up 25% YTD. We are comforted by tangible demand growth acceleration in China and the record-low orderbook-to-fleet ratio supporting long-term supply-demand fundamentals. More upside can be harvested from the inevitable return of latent ROW imports. Golden Ocean is set to yield 20% on our 2023-2025 dividend forecasts and trades at an attractive 10% discount to steel values. We reiterate BUY and NOK149 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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