Rowan (Buy, TP: USD15.00) - Cost miss in Q4
Q4 revenues were above our and consensus forecasts, but opex was far higher than expected and the guidance, leaving EBITDA 17% below our forecast and 5% below consensus. Higher than usual reimbursable revenues and costs explain some of cost miss. Market commentary remains somewhat soft, and we expect to get more colour on the earnings call scheduled at 17:00 CET (11:00 ET), as well as the reason for the high operating costs. We expect the shares to underperform peers today following the cost miss.
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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