In this equity research report, analysts Emil Ragnartz and Jacob Grimbrandt take a closer look at Reach Subsea, a Norwegian company that offers subsea Inspection, Maintenance, and Repair services for the offshore energy sector. With the coming upcycle in the offshore energy sector and investments in more efficient technique, revenue is estimated to grow at a CAGR of 11.7% and EBIT margin expected to rise from 9.1% to 15.1% by 2027. The target price of NOK 5.97 is based on an equally weighted average between a DCF and a peer valuation and implies an upside of 61%.
Investments highlights
- Reach is positioned for strong growth amid offshore industry resurgence
- Reach’s expanded service solution has improved its value proposition:
- Reach Remote is set to improve The Companys efficiency