Northern Lights

Quantafuel (Buy, TP: NOK84.00) - In a sweet spot

While we wait for good news out of Skive, the EU has been busy putting a price tag on non-recycled plastic waste and Quantafuel’s services. Hence, we have lowered our forecasts for feedstock costs, while lifting our ASP on the back of improved bio-premiums in the fuel markets and the company’s transition to premium markets for recycled plastic feedstock. Combined with a cost of capital aligned with its peer Vow, we reiterate our BUY and have raised our target price to NOK84 (23.1).

Quantafuel (Buy, TP: NOK231.00) - A decisive summer ahead

Quantafuel (QFUEL NS, Buy) - A decisive summer ahead (19 pages)

Northern Lights

Quantafuel (Buy, TP: NOK206.00) -

Quantafuel is well positioned to take advantage of the plastic waste megatrend, with its first-mover advantage in chemical recycling and backing from leading oil-market trader Vitol and chemicals giant BASF. We believe an imminent successful start-up in Skive, Denmark, could de-risk the technology and kick-start further growth rapidly, which we estimate would need USD95m of equity funding. We initiate coverage with a BUY and NOK206 target price.