Himalaya Shipping (Hold, TP: NOK99.00) - Set to face market headwinds
We value Himalaya’s top-modern fleet at a NAV of NOK116/share, including our NPV of its LNG dual-fuel, and arrive at a 0.77x P/NAV and 0.9x EV/GAV. With its highly attractive 7-year fixed-rate financing and potential premium earnings from LNG fuel (and scrubbers), we find the company partly shielded from the softer freight markets we expect medium-term. However, due to sector headwinds, we have downgraded to HOLD (BUY), but raised our target price to NOK99 (88).
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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