Swedbank oppgarderer BWO. Ser frem til ressursoppdatering på Tortue i Dussafu.

• We upgrade BW Offshore from Hold to Buy following recent share price weakness, with an unchanged TP of NOK68. The share is down 16% since our downgrade and 25% since the top in September, with the case still intact. We continue to see solid deleveraging as the key characteristic of BWO, and with several triggers in the next 6-9 months, we believe it is again a good opportunity to jump on this story of impressive cash flow.
36% upside after recent soft performance
BWO’s share price is down 16% since our downgrade two months ago, and down 25% versus its September peak. It is also among the weakest Norwegian oil service names over the last month. Although BWO gained from a very strong share price development in late summer, we find the recent underperformance to be unwarranted.

Triggers: updated reserves, refinancing, contract extensions
We see three important triggers for the BWO share over the next 6 to 9 months. First, a potential updated reserve estimate on the Tortue area of Dussafu is expected in Q4 (potentially at the Q3 presentation on 20 November).