Pareto repeats its Buy rating for drilling company SED Energy Holdings but cuts the price target to NOK 8.50 from 10.50.
Following lost contracts, the EBITDA forecast for 2027 is cut by approximately 20 percent and the current dividend is deemed unsustainable.
The share is trading at around 5.1 times EV/EBITDA for 2027 and an unlevered FCF yield of 13 percent. Pareto sees significant upside, but believes a turnaround in market momentum is likely required to lift the valuation.
