Hexagon Composites (Buy, TP: NOK54.00) - Margin expansion materialising
Q3 EBITDA was NOK184m, 8% above our estimate and 13% above consensus on higher cost scalability than expected. We have raised our 2024–2026e EBITDA by 10–12%, as the strong margin trend looks set to continue, with greater scale in operations. However, we now expect a more back-end loaded 2025, in line with regular seasonality. We still view the stock as trading attractively on 2025–2026e EV/EBITDA of 9.8–7.9x. We reiterate our BUY and have raised our target price to NOK54 (50) on increased estimates.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.