Vår Energi (Buy, TP: NOK38.00) - No news is good news
While we are neutral on Vår Energi’s Q1 report, with limited news as regards the investment case, we believe investors were relieved that there was also no negative news for the first time in several quarters. Its three key developments, which are crucial to our estimated strong free cash flow growth over the coming years, were said to be progressing according to plan, with start-ups through 2024e. The stock is trading at a small discount to our NAV and a solid ~18% dividend yield. We see large upside potential in the stock if Balder X, Johan Castberg, and Breidablikk continue to progress as planned. We reiterate our BUY and NOK38 target price.
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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