Author Archives: Hannisdahl

NODL-NS: Initiation (BUY, TP 90)

We initiate coverage of Northern Drilling with a BUY recommendation and target price of NOK 90

All the time Seadrill remains in disarray, Northern Drilling has emerged as the new investment vehicle for Fredriksen ahead of the next cyclical upturn in the rig space. The company currently has two more or less complete semi-sub newbuildings warehoused at HHI, and the main assumption is for delivery in Jan/19.

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BORR-NS: Update (BUY, TP 60[54])

Borr Drilling today announced the LOI to purchase Transocean’s 15 jackups in addition to a USD 800m equity offering. The accretive nature of these corporate events leads us to raise our target price to NOK 60 (from 54). As we highlighted...

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SONG-NO: Initiation (BUY, TP 47)

We initiate coverage of Songa Offshore with a BUY recommendation and target price of NOK 47 Songa Offshore has an EV/M.cap of 6.2 (implied 16% equity ratio) and has four modern rigs on long-term contracts to Statoil until 2022/24 (three vintage...

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GOGL-US: Acquires 16 vessels (SELL, TP USD 4.2 [4.0])

Golden Ocean today announced the acquisition of 16 dry bulk vessels for a consideration of USD 127m in shares and USD 285m in assumed debt. The acquisition and its funding structure is in our view a “no-brainer” as the shares were...

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BORR-NS: Initiation (BUY, TP 54)

We initiate coverage of Borr Drilling with a BUY recommendation and target price of NOK 54 The company is still in its cocoon, and we believe it is about to become a butterfly at an opportune time in the cycle. Recent chatter links...

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Posted in Oil services, rig, Uncategorized | Tagged | 1 Comment

DSX-US: Initiation (SELL, TP 3.1)

We initiate coverage of Diana Shipping with a SELL recommendation and target price of USD 3.1

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GNK-US: Initiation (Neutral, TP 10.9)

We initiate coverage of Genco Shipping with a Neutral recommendation and target price of USD 10.9

We find the dry cargo space very interesting and believe that the trough was 1Q16. The company is recently restructured, in a sound liquidity position and well placed to take advantage of the ongoing cyclical upturn. We find the share very reasonably priced comparative to steeper valued peers such as GOGL or SBLK, and could be contemplating a rating upgrade if the share price continues to slide.

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EGLE-US: Initiation (Neutral, TP 5.5)

We initiate coverage of Eagle Bulk with a Neutral recommendation and target price of USD 5.5

We find the dry cargo space very interesting and believe that the trough was 1Q16. The share is attractively priced comparative to peers, but we deem its fleet to have strong industrial qualities which is less opportune in the current point of the cycle.

Something that could spark the stagnant and peer-trailing share price into life is further corporate actions (accretive equity issuances & vessel acquisitions) in addition to increased focus from positive investment banker analysts. We do believe the share will outperform peers in the short to medium term, and suggest the hedged dry bulk investor to go long EGLE and short steeper valued peers such as GOGL or SBLK.

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SALT-US: Initiation (Neutral, TP 7.1)

We initiate coverage of Scorpio Bulkers with a Neutral recommendation and target price of USD 7.1 We find the dry cargo space very interesting and believe that the trough was 1Q16. The share is attractively priced comparative to peers, but...

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SBULK-NO: Initiation (Neutral, TP 41)

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SBLK-US: Initiation (SELL, TP 5.2)

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GOGL-US: Initiation (SELL, TP 4.0)

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