Hexagon Purus (Buy, TP: NOK30.00) - Improving operational leverage
Despite stronger Q2 results than expected, the reiterated 2023 EBITDA guidance implies H2 will be slightly softer than we expected; therefore we have not made any material changes to our 2023e EBITDA following the beat. With a solid backlog and improving operational leverage, we have raised our 2024e EBITDA by 12%, while we see earnings approaching break-even in 2025. We view the valuation as attractive, with the stock trading at a ~60% discount to hydrogen equipment peers on 2023–2026e EV/sales – we calculate it would need to more than double to bring it in line. We reiterate our BUY, and have raised our target price to NOK30 (29).
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.