MPC Container Ships (Sell, TP: NOK16.30) - Stretched valuation
New charters presented MPCC’s potential to add to its backlog at constructive rates in the current healthy freight market raised by disruptions and solid volumes. However, we still find the 80% YTD share price return excessive. We estimate average rates more than 25% above current levels are required for open days until 2026 to justify the current share price, leaving a poor risk/reward, in our view. We reiterate our SELL, but have raised our target price to NOK16.3 (15.7).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.