TGS Nopec (Sell, TP: NOK155.00) - Neutral Q4, flat 2018e not enough
For Q4 results, we forecast USD143m in sales, below consensus at USD152m. Following recent strong peer reports, we believe that investor expectations are higher and we have a muted view on the results. We expect the company to guide for flat outlook in 2018, based on flat seismic budgets from the oil companies. We believe this will disappoint the high consensus expectations; consensus expects sales up 14% in 2018. With negative near-term triggers, we retain our SELL recommendation and NOK155 target price.TGS Nopec Geophysical provides geoscience data to oil and gas exploration and production companies worldwide. In addition to global geophysical and geological data libraries that include seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, Co. also provides advanced processing and imaging services, interpretation products, permanent reservoir monitoring and data integration solutions.
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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