Hexagon Composites (Buy, TP: NOK38.00) - Cautious on near-term outlook

We are significantly below consensus on Q1e EBITDA, owing to the challenging US truck market, with the uncertainty in demand, costs, and regulations resulting in lower demand for new trucks and technology shifts taking longer. With most of its business in the US, we consider Hexagon Composites vulnerable. As a result, we have lowered our 2025–2026e EBITDA by 9–15%. We reiterate our BUY, but have cut our target price to NOK38 (50) on the weaker near-term outlook.

Renewable Weekly – 20 February 2025

This week, we summarise this week's most important newsflow on the companies under our coverage.

Energy Morning - 14 February 2025

Hexagon Composites (Buy, TP: NOK50.00) - In a transition year

2025 looks set to be a transition year, with a slower roll-out of natural gas trucks and low Mobile Pipeline activity hampering H1. Thus, we have cut our 2025e EBITDA by 24%, to the top of the guidance of NOK640m–740m that we consider to be conservative. Seeing the long-term investment case as still intact and hearing welcomed commentary on no further financial support to Hexagon Purus, we consider yesterday’s sell-off to be an overreaction. We reiterate our BUY, but have cut our target price to...

Strong finish, but soft 2025 outlook

Energy Morning - 13 February 2025

Energy Morning - 7 February 2025

Set for a strong finish

Hexagon Composites (Buy, TP: NOK52.00) - Consensus too conservative on...

We believe consensus is too conservative on realised margins; we are 8% above on Q4e EBITDA and 8–9% above on 2025–2026e EBITDA. We still consider X15N fuel system orders key for our investment case. We reiterate our BUY, but have cut our target price to NOK52 (54). We still view the stock as attractively valued at 2025–2026e EV/EBITDAs of 8.2–6.6x.

Renewable Weekly – 27 January 2024

This week, we summarise this week's most important newsflow on the companies under our coverage.

Energy Morning - 3 December 2024

Renewable Weekly – 28 Nov 2024

On aggregate, the R&C stocks underperformed (equal weight) the MSCI Nordic by ~4% throughout the reporting season (15 October to today).

Renewable Weekly – 11 November 2024

The growth journey has started

Hexagon Composites ASA: 1 director

A director at Hexagon Composites ASA sold 66,856 shares at 44.400NOK and the significance rating of the trade was 59/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years ...

Hexagon Composites (Buy, TP: NOK54.00) - Margin expansion materialisin...

Q3 EBITDA was NOK184m, 8% above our estimate and 13% above consensus on higher cost scalability than expected. We have raised our 2024–2026e EBITDA by 10–12%, as the strong margin trend looks set to continue, with greater scale in operations. However, we now expect a more back-end loaded 2025, in line with regular seasonality. We still view the stock as trading attractively on 2025–2026e EV/EBITDA of 9.8–7.9x. We reiterate our BUY and have raised our target price to NOK54 (50) on increased estim...

Energy Morning - 6 November 2024

Renewable Weekly – 1 November 2024

This week, we summarise this week's most important newsflow on the companies under our coverage.

Awaiting 15L data and the HPUR capital raise

Hexagon Composites (Buy, TP: NOK50.00) - Awaiting orders

We expect the higher activity level to translate into higher operating leverage, and forecast Q3 EBITDA of NOK170m, 5% above consensus. We believe the focus in the report will be potential new orders related to the X15N engine. We are 5–10% above consensus on 2024–2026e EBITDA, and see potential for positive revisions. We reiterate our BUY and NOK50 target price, and see the standalone company trading attractively at 2025–2026e EV/EBITDAs of 8.3–6.7x.