Hexagon Purus (Sell, TP: NOK1.80) - Hurt by low demand visibility
While we welcome Hexagon Purus’ efforts to minimise cash burn with the announced cost cuts and business portfolio review, we see it being hurt by stark market headwinds. We believe other levers to preserve cash could be divestments of the US zero-emission businesses, where the cash burn is highest. We have cut our 2025–2026e EBITDA by 20–13%, but highlight a broad scope of outcomes (also on the negative side). We reiterate our SELL and have cut our target price to NOK1.8 (2.9); we see it trading at a ~40% premium to hydrogen equipment peers on 2025–2027e EV/sales.
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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