EURONAV - Company Note 06.06.2019 - Time to board
As we expect rates to take off in 2H19 we have conducted a more granular approach to Euronav’s SOTP NAV valuation. In order to have our target price reflect the potential future fleet value in a more broad sense than on the sole basis of current asset prices, we upgrade our TP from € 9.00 to € 10.5 p.s. entailing an upside potential of 42%. Our new TP is based on Euronav’s SOTP fleet NAV valued at historical average asset prices as well as using a depreciated newbuild vessel method. Consequently it translates in a what can be thought of as a 10% “market forecast premium†to current market price NAV of $ 10.53 p.s. or € 9.41 p.s. (entailing a 21% discount to Euronav’s share price.)Given the stable/rising asset prices, combined with the 20% share drop over the past two weeks, we see this as a buying opportunity
Euronav is a provider of maritime shipping and offshore services engaged primarily in the transportation and storage of crude oil. As of Apr. 4, 2017, Co. owned and operated a modern fleet of 55 vessels (including four chartered-in vessels) with an aggregate carrying capacity of approximately 13.7 million deadweight tons, or dwt, consisting of 31 very large crude carriers, one ultra large crude carrier, 21 Suezmax vessels, and two floating, storage and offloading vessels. Co. has two operating segments: the operation of crude oil tankers on the international markets (tankers) and the floating production, storage and offloading operations.
We are a financial services provider for several types of professional clients, each with distinct needs.
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