Petroleum Geo-Services (Hold, TP: NOK21.00) - Uncertainty set to remain high
With the shares down by 35% in October and approaching our target price, we have upgraded our recommendation to HOLD (SELL), but reiterate our NOK21 target price. Near-term, we expect volatility around newsflow related to the exploration well for Azimuth, and a potential sale of the Ramform Sterling. We still consider consensus for 2019 too high, with 60% downside risk to EBIT, resulting in increased focus on its debt maturities in 2020-2021.Petroleum Geo-Services is engaged in providing geophysical services and oil and gas production services. As of Dec. 31, 2001, Co. operated six Ramform design vessels in its marine seismic data acquisition operations.
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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