SFL Corporation Ltd (Hold, TP: USD14.30) - Building DPS capacity
Solid deal flow in Q1 (contracts for seven container vessels and acquisitions of five tankers) has increased the backlog by cUSD0.5bn and added exposure to a hot chemical tanker market. We see upside potential for the Hercules rig, with its contract expected to end in Q4 2024, and estimate an annualised increase to our cash-flow estimates post-Q4 of USD0.33/share if extending the contract at similar terms. We reiterate our HOLD, but have raised our target price to USD14.3 (12.0).
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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