Arctic Securities sees firm demand, record rates for car carriers in 2024

Gram Car Carriers ASA

19/01/2024 13:52

** Arctic Securities sees big upside potential for Norwegian
car carriers' stocks, with the market set to "remain firm
throughout 2024"
    ** It flags an upside of 74% for Hoegh Autoliners  HAUTO.OL 
(TP NOK 175); 59% for Wallenius Wilhelmsen  WAWI.OL  (TP NOK
155); and 15% for Gram Car Carriers  GCC.OL  (TP NOK 262),
raising TP for all by 7-30%
    ** Rates are already at a record high, with a further upside
should ship owners continue to avoid the Red Sea, the broker
says, reiterating "buy" ratings across the board
    ** "Demand remains firm as we close the gap to pre-Covid
Auto sales," it says, highlighting strong exports from China,
Korea and Japan
    ** The broker says the high level of new ship orders at 36%
is not a concern, as its estimate of 11% car-mile growth is set
to exceed the 8% fleet growth estimated for 2024  
        ** However, it notes the market balance is set to turn
in 2025, when it expects supply growth to exceed tonne-mile
growth by 5 percentage points

 (Reporting by Elsa Ohlen)
 ((elsa.ohlen@thomsonreuters.com;))