Odfjell Technology (Buy, TP: NOK80.00) - Dividend and growth in focus
Our Q4e EBITDA of NOK214m is in line with consensus. We expect the working capital build in Q3 to partially reverse in Q4, paving the way for solid FCF (we forecast NOK157m). Growth is likely to slow in 2024e, after two strong years, before picking up in 2025e; we estimate 2024 EBITDA growth of 3% YOY and 7% in 2025. Key for the equity story, we will focus on the outlook for future growth potential and signals on higher shareholder distributions, reflecting the strong cash flow yield (2025–2026e c20%). Trading at a 2024e EV/EBITDA of 3.2x, we reiterate our BUY and NOK80 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.
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.