MPC Container Ships (Sell, TP: NOK18.50) - Hot markets, but overheated stock
We have raised our estimates on a read-across from the recent TC contracts and assume all 29 vessels ending their current contracts until Q3 2025 to be fixed at similar levels (average USD20k/day). However, we find the c100% share price appreciation YTD excessive, with risk/reward to the downside as we expect inevitable headwinds for the container market exacerbated by a potential return to the Red Sea. We reiterate our SELL, but have raised our target price to NOK18.5 (16.3).
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.
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