Maersk Drilling (Buy, TP: DKK285.00) - Beaten up a little too much
After raising guidance (midday Thursday), supporting a c7% rise in 2021 EBITDA consensus and reporting H1 (on Friday) just above consensus, the stock has tumbled 14%. We believe the main reason is related to the risk of negative 2022 estimate revisions (we remain c20% below consensus), due to: 1) temporarily softer CJ70 demand in Norway; and 2) delays in consensus reflecting the Inspirer sale in earnings estimates. We are surprised about the magnitude of the sell-off, and have upgraded to BUY (HOLD), with a target price of DKK285 (260).
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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