SFL Corporation Ltd (Hold, TP: USD7.50) - Two key hurdles ahead
We have made some housekeeping revisions to our model following the Q4 results. As 2021 progresses, we believe SFL will make accretive transactions, and is likely to find good investment opportunities within the container sector. However, near-term we see a fair risk/reward in the stock, as a crucial court order (allowing funds to flow on two of its rigs) and the convertible note refinancing could be negative events. We reiterate our HOLD, but have lifted our target price to USD7.5 (6.7), based on an 8% yield (previously 9%).
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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