Lundin Petroleum (Sell, TP: SEK228.00) - Fully valued and then some
Lundin reported Q1 EBITDAX 3% below consensus and 2% above our estimate, while operating cash flow was strong. Management reiterated production guidance, but indicated risk skewed to the upside. We have made limited changes to our 2019/2020e, and reiterate SELL. Lundin looks overvalued on both NAV and DCF, and we advise investors to use the – in our view unwarranted – positive share price reaction as a selling opportunity.Lundin Petroleum is an oil and gas company. Co. has a global portfolio of assets with two main areas located in Norway and South East Asia. As of Dec 31 2014, Co. held close to 70 licences in Norway, with activities across exploration, appraisal, development and production. Co. also operated within several geographical areas, including France, Netherlands, Malaysia, Indonesia, Russia, Sweden and other countries.
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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