Report
Bart Cuypers

CFE: Growth-ORIONted Leader

Despite showing itself capable of weathering the storm of a slow dredging market relatively well, a flattish 2019 outlook and a postponed Dredging market recovery combined with increased macro uncertainty has continued to put pressure on the share. With a massive extended order book of € 6.5bn and two new, ultra-efficient flagships just beyond the horizon to exploit it, as well as a market leading position in a rapidly expanding offshore wind market, CFE in our view is setting up for strong EBITDA growth in 2020 and 2021. We reiterate our TP of € 115 (i.e. average of SOTP, historic multiples and DCF), representing 51% upside versus the current share price, and hence also our Buy-rating.
Underlyings
Cape Lambert Resources Ltd.

Cape Lambert Resources is engaged in mineral investment, exploration and evaluation. Co.'s operations include: Marampa Project, which is a brownfields hematite iron ore project located in Sierra Leone, West Africa; Kukuna Project, which is located in northwest of Sierra Leone, and comprises one exploration licence; Rokel Project, which is located in Sierra Leone, and is prospective for discovery of hematite schist deposits geologically similar to those found at Marampa; Cote D'Ivoire Project, which includes three tenements in the Birimian Gold Belt of Cote D'Ivoire; and Wee MacGregor Project, which includes mining leases and exploration permits for minerals in Queensland, Australia.

Compagnie d'Entreprises CFE SA

CFE is engaged in civil engineering, buildings and industrial construction, dredging works and electrical installations. Co. is also engaged in property development, environmental protection and building management. Co.'s works carried on by Co.'s civil engineering group includes the following: hydraulic engineering, harbor works, bridges, and other engineering works, tunnels, road construction, dams, storage tanks, piping and drainage and caissons sunken soft soil. Co.'s buildings and industrial construction sector is active in the following fields: administrative buildings, industrial construction, public utility buildings, redevelopment, and residential buildings.

Provider
KBC Securities
KBC Securities

We are a financial services provider for several types of professional clients, each with distinct needs.

 

Analysts
Bart Cuypers

Other Reports on these Companies
Other Reports from KBC Securities

ResearchPool Subscriptions

Get the most out of your insights

Get in touch