We reiterate Sell with a new target of NOK 120 (130). Revenue revision has been negative post Q2 and we believe this trend will continue. While we expect 2H 2020 revenues of USD 196m, consensus is at USD 241m. Furthermore, 2021 estimates appear high as we do not believe TGS will be able to replace the 2020 backlog, which we believe will become evident over the next months. On 2020/21 numbers, we find no valuation support on FCF, P/E or EV/EBIT
03 Aug 2020
Negative estimate revisions to continue
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Negative estimate revisions to continue
We reiterate Sell with a new target of NOK 120 (130). Revenue revision has been negative post Q2 and we believe this trend will continue. While we expect 2H 2020 revenues of USD 196m, consensus is at USD 241m. Furthermore, 2021 estimates appear high as we do not believe TGS will be able to replace the 2020 backlog, which we believe will become evident over the next months. On 2020/21 numbers, we find no valuation support on FCF, P/E or EV/EBIT