Citi initiates Svitzer with 'buy', expects stable earnings

Svitzer A/S

03/05/2024 14:01

** Citi initiates Svitzer  SVITZR.CO  with "buy", saying the
Danish towage group has stable, non-cyclical earnings, high
predictability based on long-duration contracts
    ** Svitzer shares rise 7% to DKK 236; the broker sets TP at
DKK 285
    ** Citi points out that Svitzer, which recently demerged
from A.P. Moeller Maersk  MAERSKb.CO , is the largest towage
company globally by number of vessels and ports
    ** Citi notes favourable industry trends, expecting towage
market's compound annual growth of 5% from 2023 to 2028
    ** Broker predicts stable dividend payments in the long run,
noting the company's guidance of 40-60% payout 
    ** Svitzer also looks cheap vs global infrastructure peers,
albeit peers show higher growth rates, broker adds

 (Reporting by Anna Chaberska)
 ((Anna.chaberska@thomsonreuters.com))