Disappointing growth communication leaves few alternatives left

New targets hint potential share buybacks

Ahead of CMD on 20 Nov

Subsea 7 (Buy, TP: NOK260.00) - All eyes on 2025 guidance

We are in line with consensus on Q3e adj. EBITDA and expect 2025 revenue guidance to be the key focus (margin guidance already provided). Our 2025e revenue of USD7.1bn is in line with consensus, with YOY growth supported by an already-secured backlog (69% backlog coverage versus 55% historically), higher dayrates for its PLSVs, and two new fleet additions in 2025. We reiterate our BUY and NOK260 target price.

Schibsted (Sell, TP: NOK300.00) - Less talk - show acceleration

We believe the Schibsted CMD revealed that its future success is more dependent upon its ability to create revenue growth than pursue low-hanging cost cuts. We reiterate our SELL and NOK300 target price, as we continue to find the valuation rich relative to its peer group and growth prospects.

Måsøval (Buy, TP: NOK39.00) - Soldiered through a tough quarter

Q3 operating EBIT of NOK-61m was in line with the pre-announced profit warning and reflected biological challenges for Farming Mid (sea lice and ISA) as well as one-off start-up costs for the new harvesting plant in Sales & Processing. Farming West reported solid operational progress and an encouraging outlook. The 2025 volume guidance of 29–31kt was below our 32.6kt estimate, but the 34kt medium-term harvest target was maintained. We reiterate our BUY, but have cut our target price to NOK39 (41) on our lowered estimates.