On Monday, Stifel increased its price target for Cadeler (NYSE:CDLR), a company specializing in wind turbine installation, from $34.00 to $37.00, while maintaining a Buy rating on the stock. This adjustment follows Cadeler's announcement of securing a new contract with significantly higher rates than previous agreements.
Cadeler's latest contract for their wind turbine installation vessel suggests an impressive day rate of €490,000, a notable increase of nearly €150,000 per day compared to earlier projections. This new contract is set to involve the installation of 72 turbines and is expected to contribute to a substantial rise in the company's revenue.
The analyst from Stifel highlighted the growing backlog of contracts at Cadeler, with pricing on the rise, leading to a positive outlook for the company's earnings before interest, taxes, depreciation, and amortization (EBITDA). The forecast for 2027 EBITDA is now well above €800 million, which is an encouraging sign for investors.
Considering the company's peak net leverage, which is estimated to reach around €750 million in early 2026, Cadeler's shares are currently trading at approximately 3.5 times the projected 2027 EBITDA. This valuation points to a strong financial position for the company.
InvestingPro Insights
Amidst Cadeler's recent achievements and Stifel's price target upgrade, InvestingPro metrics and tips shed additional light on the company's financial health and market standing. With a market capitalization of $2.12 billion and a strong price performance, Cadeler is showing signs of robust growth. The company's revenue has grown by 4.79% over the last twelve months as of Q1 2024, indicating a steady upward trajectory in its financial performance. Moreover, the stock is trading near its 52-week high, at 99.3% of this threshold, reflecting investor confidence and a bullish market sentiment.
InvestingPro Tips highlight that analysts are optimistic about Cadeler's future, expecting net income and sales to grow this year. Furthermore, the company's liquid assets surpass its short-term obligations, suggesting a solid liquidity position. However, it's worth noting that Cadeler is currently not profitable over the last twelve months, and it trades at a high EBITDA valuation multiple, which could indicate a premium market pricing.
For those intrigued by Cadeler's potential and seeking deeper insights, InvestingPro offers additional tips on the company's financial outlook. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the full range of expert analysis and metrics available on InvestingPro.
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