DNB is a believer in BW Group’s wind turbine installation vessel (WTIV) owner Cadeler.
The bank initiated coverage on the company — bolstered after a $1.2bn takeover of Scorpio Group-backed rival Eneti earlier this month — with a NOK 70 ($6.84) target price.
Cadeler shares opened Friday at NOK 45.72 and promptly jumped to NOK 46.96 before cooling to NOK 46.54.
The company “is set to reap benefits operationally and in the capital markets as the undisputed industry leader,” DNB analyst Martin Huseby Karlsen said on Friday.
“Compared to other parts of the offshore wind value chain, Cadeler appears largely protected (or even benefiting) from recent headwinds,” he said.
“The installation vessel market remains undersupplied for the foreseeable future and recent contracts suggest record-high day rates.”
Karlsen said Cadeler’s fleet of four WTIVs and another six on order make it the industry leader in a sector short of as many as five vessels through 2030 and a market through 2027 that favours owners.
The company will be protected from recent issues in the offshore wind industry, where some developers have dropped projects due to rising costs given its place in the supply chain, he said.
The combination of Cadeler and New York-listed Eneti, on which DNB acted as an advisor, was first announced in June.
The deal saw Cadeler shareholders take 60% of the combined company and Eneti investors 40%.
On 15 December, the company announced 85% of Eneti shareholders had accepted the deal.
The combined Cadeler will be listed in both New York and Oslo.
Following the completion of the merger, Cadeler chief executive Mikkel Gleerup said in accepting the deal, shareholders underlined “the trust in Cadeler’s vision and capability to facilitate the renewable transition.”
The new company will be able to handle the largest and most complex offshore wind installation projects, he added.
