Odfjell Technology (Buy, TP: NOK80.00) - Set for more attention and re-rating
The refinancing of Archer could see more attention put on Odfjell Technology, since Archer is one of its closest peers. Archer’s equity placement at NOK1/share and current share price imply a post-refinancing EV/EBITDA of 5.1x based on the mid-point of its 2023 EBITDA guidance. In comparison, Odfjell Technology is trading at a 2023e EV/EBITDA of 3.5x; applying Archer’s multiple yields a fair value of NOK82, 60% above Odfjell Technology’s current share price, while applying a broader peer group’s 2-year forward EV/EBITDA of 5.8x implies 80% potential upside to NOK94. We reiterate our BUY and NOK80 target price on Odfjell Technology.
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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