Hexagon Composites (Buy, TP: NOK40.00) - Progressing ahead of expectations
We have raised our 2024e EBITDA by 13% (6% above consensus), due to solid Q2 margins and increasing order intake, and 2025e by 6% on the optimistic market outlook. While uptick in activity in 2024e appears fully priced in, in our view the stock is trading attractively at a 2025–2026e EV/EBITDA of 8.0–6.8x. We reiterate our BUY and NOK40 target price, which is set at a slight discount to our 2025e EV/EBITDA-based SOTP.Hexagon Composites is divided into three business segments. Co.'s Hexagon Ragasco segment manufactures low-pressue composite cylinders, such as cylinders for propane gas; and Co.'s Hexagon Lincoln/Hexagon Raufoss segment develops and supplies complete storage and transport systems for natural gas and hydrogen to the bus and automotive industry and for bulk transport of compressed gas. The Group's activities are divided into the following regions: Europe, North America, South-East Asia, Middle East and South America.
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.