DEME FIRST LOOK : Good set of FY23 results, New € 150 Target Price

We saw a good set of FY23 results for DEME mainly attributed to a series of contract awards in both the Offshore Energy and Dredging & Infra segments, representing further global expansion. We increase our TP to € 150 (Accumulate rating maintained) as - given the robust demand trends and a strong orderbook - DEME remains confident about its growth prospects and expects turnover to continue to grow in the coming years with an annual EBITDA margin in a 16 to 20% range each year. We and CSS will have to increase our forecasts as for FY24, DEME expects a turnover growth of at least 10% y/y (KBCSe 6%, CSS 8.8%) with an EBITDA margin comparable to FY23 (18.2%). For 2024, CapEx is anticipated to be between € 300m and € 350m (KBCSe €425, CSS € 406m).