Arctic: SFL - Reiterating Buy ahead of Q1

研报英文原文证据摘录

Arctic: SFL - Reiterating Buy ahead of Q1

SFL Buy Hold

SFL US | Other Shipping | Equity Company Update | 11 May 2026 | 07:13 Sell

Reiterating Buy ahead of Q1 Financials and estimates changes Target $ 13.40 (9.50)

The share has been strong YTD, displaying a total return of ~55%. We have long argued that Key Figures (USDm) Dec-24 Dec-25 Dec-26e Dec-27e Dec-28e Highlights

the main anchor for SFL has been the Hercules rig, and the uncertainty revolving it. With the Recommendation Buy

Revenue 904.4 733.0 686.6 805.9 843.0 Target Price $ 13.40 (9.50)

400-day contract announcement in March, we argue the visibility has improved materially,

EBITDA 545.9 405.7 406.8 493.4 509.3 Share Price 12.00

in turn reducing risk and leaving the company in an improved position in terms of cash flow EBIT 314.1 143.6 198.9 284.2 288.9 Upside (%) 11.7

management. On the back of the aforementioned factors, we argue that the backdrop for a EPS 1.02 (0.20) 0.19 0.95 0.92 Market cap (USDm) 1,594

distribution uplift looks increasingly promising. We reiterate Buy with a TP of USD 13.4/sh. Adj. EBITDA 577.8 438.9 454.4 543.8 560.9 Enterprise Value (m) 2,587

Adj. EBITDA margin (%) 63.9 59.9 66.2 67.5 66.5 Number of shares (USDm) 133

Improved visibility bodes well for further debt optimization

Adj. EPS 0.00 0.00 0.00 0.00 0.00

Given the improved visibility from the Hercules contract announced in March, we argue that all- 12 months share price performance: Revenue growth (%) 20.2 (19.0) (6.3) 17.4 4.6

else-equal the company should have lifted its headroom in terms of relaxing its amortization EPS growth (%) 54.0 (119.8) (196.4) 390.0 (3.0) 16 Performance (%) 3M 6M 1Y

SFL US 33.8% 65.2% 60.3%

OSEBX 31.1% 57.9% 44.9%profile. Going by its current amortization schedule, we have SFL with net debt drawdowns 15