Clarksons Securities has started its coverage of Norden by giving the dry bulk and tanker operator a ”buy” rating and a share price of DKK 500, writes the investment bank in a new analysis.

The stock value has more than tripled over the last three years, primarily due to trading business Freight Services & Trading, contracting 450 ships, according to Clarksons.

”Despite a considerable gain in the stock price over the past year, the company’s valuation remains low, as the trading operation is valued at next to nothing, despite its outstanding performance in recent quarters,” write Clarksons analysts Frode Mørkedal and Even Kolsgaard.

The analysts furthermore highlight that the stock is traded at a substantial 25-percent discount compared to the net asset value (NAV), and that the company is paying out at least 50 percent of net income as dividends.

Norden has had a tremendous 2022 with no less than six upward adjustments, and the strong income development also means that 2022 could allow for dividends of 20 percent of the share value, according to Clarksons.

“We are strong believers in the dry bulk sector, and we consider Norden as a great market play because of its operational leverage,” state the analysts.

English edit: Kristoffer Grønbæk