MPC Container Ships (Sell, TP: NOK17.00) - Too optimistic at ~NOK20/share
MPCC has kept busy with portfolio optimisation measures since Q1, but in our view has been adding exposure in a falling market. TC rates are back to their lowest levels since November 2020, and durations are coming down, while liners are feeling pressure to cut back capacity to slow rate deterioration. In the coming quarters, we expect mass deliveries and cascading effects, unwinding congestion, slow demand, and, eventually, a return of idling – all pressuring the non-operating owners. We believe this implies more headwinds than tailwinds for MPCC from here. We have downgraded to SELL (HOLD) and cut our target price to NOK17.0 (19.3).
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.