Odfjell Technology - Initiation of coverage - Opportunity to shine
Following its spin-off from Odfjell Drilling in Q1, Odfjell Technology is new to the Oslo stock exchange. It brings more than 40 years of drilling and well service experience in an asset-light business model with an impressive earnings track record (also through industry downturns). Its shares have received limited investor attention and have had low trading volumes, which we believe explains the attractive valuation of 2023e EV/EBITDA of 3.0x (c50% below peers) and cash flow yield to EV of 17%. We initiate coverage with a BUY and NOK50 target price based on our SOTP, DCF and peer-group multiples.
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.