MPC Container Ships (Buy, TP: NOK29.10) - Cash flows deferred
Ahead of the Q2 results, we have made minor estimate changes, raising 2024e EBITDA by only c1%. The recent newbuild orders deviate from MPCC’s strategy of focusing on direct shareholder returns, in our view. As a result, we have taken a more cautious approach to valuing its backlog as the redirection of cash flow to long-term investment means a straightforward cash flow-based valuation is less relevant. We reiterate our BUY but have cut our target price to NOK29.1 (35).
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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