MPC Container Ships (Hold, TP: NOK17.58) - Fleeting gains
The rapid rate deterioration has temporarily stalled, supported by what we view as synthetic supply responses to be regarded with caution in light of a bleak macroeconomic backdrop and an amassing supply outlook increasing the rechartering risk for MPC’s vessels exposed to highly operationally levered operators. We are broadly in line with the guidance for 2023e EBITDA, allowing a NOK6/share dividend capacity (36% direct yield), although we believe the risk remains on the residual. We reiterate our HOLD but have cut our target price to NOK17.6 (18.7) on FX and dividend adjustments.
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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