TGS (Hold, TP: NOK130.00) - Too early to call it a full comeback
Based on the strong intraday share price reaction (+9%), the Q1 late-sales beat appears to have been a relief to investors following the soft Q4. The share price is trading 5% higher than pre-Q4, despite consensus 2024–2025 EPS having come down 20–25%. Moreover, combined late-sales for Q4 and Q1 were c30–35% below initial consensus. We believe the strong share price reaction implies limited room for disappointments, as buy-side consensus appears higher for future earnings, leaving risk/reward neutral in our view. We reiterate our HOLD, but have increased our target price to NOK130 (120).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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