CMB.Tech has been upgraded by Fearnley Securities to “buy” from “hold” in a fresh note.
Fearnley Securities views the Belgian shipowner as “offering attractive entry to future-proof shipping”.
The Brussels and New York-listed company’s shares have fallen in the past month.
Analyst Fredrik Dybwad said that because of weaker tanker markets, new time charters and changes to the delivery schedule, Fearnley Securities lowered its Ebitda estimate for this year by 16%; for 2025 by 12%; and for 2026 by 4%.
However, it maintains its target price at $18 per share, equal to one year’s forward net asset value.
“As such, with 40% upside to our target price, we upgrade CMB.Tech to ‘buy’,” he added.
Shares closed at $12.86 in New York on Monday.
“CMB.Tech’s pivot into a diversified shipping company is playing out, with continued divestments on the crude tanker side and fleet growth of modern tonnage of tanker, dry bulk, container and offshore wind vessels,” Dybwad said.
The company reported third-quarter results last week.
Net income fell to $98.1m from $114.6m in the same period of 2023.
Chief executive Alexander Saverys said the company is confident it will increase its backlog in the next couple of weeks and months.
Dybwad said: “Backlog remained stable around $2.06bn quarter on quarter, but with new vessels hitting the water every quarter and preference for long-term [time charters], we expect the backlog to continue expanding — enhancing cash flow visibility.
“Further, new projects could materialise over the coming quarter, which should continue to add to CMB.Tech’s growth story. Lastly, we expect to see more divestment of crude tanker tonnage, supporting the newbuild programme and potentially opening up for dividends.”
Fearnley Securities also initiated credit coverage of CMB.Tech with a “buy” on the outstanding unsecured bonds due 2026.
The investment bank finds “CMB.Tech’s credit profile to be attractive, supported by long revenue backlog of $2.06bn, diversified fleet across multiple segments, low LTV [loan-to-value] and sizeable equity cushion with a market capitalisation of $2.5bn”.
