MPC Container Ships (Hold, TP: NOK14.70) - Fairly valued after sell-off
The share price decline in recent weeks now leaves limited downside potential in our view. Rather, the company is leveraging its strong position to navigate the market downturn through contract extensions and vessel sales. Despite sales implying more downside to current broker quotes, we see potential to capitalise on what we view as still-attractive values, in order to bring forward cash flows ahead of a bleak sector outlook. We have upgraded MPC Container Ships to HOLD (SELL), but reiterate our NOK14.7 target price.
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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