Odfjell Technology (Buy, TP: NOK80.00) - Trading at attractive multiples
We expect EBITDA to be broadly flat QOQ and free cash flow to improve meaningfully, helped by the unwinding of working capital (our Q2e EBITDA: NOK194m, and FCF: NOK117m, no proper consensus available). We have raised our 2024–2025e EPS 2% due to higher estimates for the well services segment, partly offset by higher interest rates on its bond. The stock is trading at industry-leading multiples with its 3.0x 2024e EV/EBITDA, versus closest local peer Archer at 3.7x and the median of companies in our coverage at 5.5x. 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.
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