Hexagon Purus (Buy, TP: NOK13.00) - Capacity ramp-up taking longer
We see Hexagon Purus’s capacity expansion taking somewhat longer than expected due to delayed equipment deliveries, leaving us 19% below consensus on Q4 revenues and 9% below on EBITDA. We have also lowered our 2024e revenues by 15%, leaving us 12% below consensus. With 54% of consensus 2024 revenues being covered by the backlog and 3–9 months of lead time from awards to execution under the company’s long-term agreements, we see the potential for negative revisions. However, we reiterate our BUY and NOK13 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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