Hexagon Purus (No_rec, TP: NOK) - In rough waters
Hexagon Purus’s weak Q1 results underpinned the stark market challenges for its hydrogen- and battery-related businesses. Seeing a liquidity runway into Q2 2026 at the current underlying cost base, we welcome the company’s aim of further cost cuts to preserve cash, and hope to see the results of the ongoing portfolio review soon. However, we still believe a restructuring of the company’s NOK2.1bn in convertible debt is needed. We have cut our 2025e EBITDA by 5% on the weaker-than-expected Q1 results, and are well below consensus for 2025–2027e EBITDA. We reiterate our NO REC and no target price, given the high uncertainty and broad set of potential outcomes for the equity.
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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