The merger with Kværner solved Aker Solutions balance sheet issues and unlocked additional cost savings, which leaves the company better positioned for the future. That said, its core markets remain challenging, and we believe it will take time before order momentum and consequently earnings power returns. Consequently, we see downside to AKSO’s revenue and cash flow targets. We reiterate sell, but lift our target to NOK 12.
03 Dec 2020
Better positioned, but market is still weak
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Better positioned, but market is still weak
The merger with Kværner solved Aker Solutions balance sheet issues and unlocked additional cost savings, which leaves the company better positioned for the future. That said, its core markets remain challenging, and we believe it will take time before order momentum and consequently earnings power returns. Consequently, we see downside to AKSO’s revenue and cash flow targets. We reiterate sell, but lift our target to NOK 12.