DnB Markets - Stolt-Nielsen Ltd. (SN6) Stolt-Nielsen (Buy, TP: NOK530.00) - Bullish sentiment to reawaken

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DnB Markets

Jørgen Lian

EUR 455.19 For Business Accounts Only

Stolt-Nielsen (Buy, TP: NOK530.00) - Bullish sentiment to reawaken

We believe the tanker market should improve from recent softness and see solid rates towards end-2024e and into 2025–2026e, with chemical tanker rates to be fuelled by improving chemical trade, a still healthy orderbook, and reduced swing tonnage. We calculate a 19% average 2025–2026e earnings yield, and believe Stolt-Nielsen screens as an appealing tanker exposure, trading at a 2025–2026e average EV/EBITDA of 4.1x (tanker peer group: 4.6x). We reiterate our BUY, but have cut our target price to NOK530 (533).

03/10/2024 1 EN

Underlying

Stolt-Nielsen Ltd.

Stolt-Nielsen is a holding company. Co. through its subsidiaries is engaged in maritime industries. Co.'s operating units include Stolt Tankers, providing transportation services for bulk liquid chemicals, edible oils, acids, biofuels and clean petroleum products; Stolthaven Terminals, offering storage for bulk liquid chemicals, edible oils, acids, biofuels and clean petroleum products; Stolt Tank Containers, operating a fleet of tank containers for shipments of bulk liquid chemicals, food-grade products and bitumen via road, rail and container ship, as well as Stolt Sea Farm, focused on the production of fish including turbot, sturgeon, sole and caviar.

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BMG850801025 Berlin Stock Exchange Bermuda

Provider

DnB Markets

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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Analysts

Jørgen Lian

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Stolt-Nielsen (Buy, TP: NOK530.00) - Bullish sentiment to reawaken

Q4 tanker estimates down on lower guidance

Q3 miss and guides for lower TCE in Q4

Novo Nordisk (Buy, TP: DKK1150.00) - CagriSema set to raise the bar

Pandora (Buy, TP: DKK1400.00) - Solid Q3e on tough comparables

Lower rates to drive higher multiples

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