BofA Global Research flagged an upside to estimates for Adnoc Logistics & Services (ADX:ADNOCLS), based on the company's newly upgraded guidance and "exceptionally strong" second-quarter results.
"The mid-point of the new guidance on EBITDA/Net Income is higher by 20%/50%+ versus BofA/consensus. Investors are likely to discount part of the current shipping windfall given its linkage to the Hormuz disruption; however, we believe the earnings story extends beyond this," the research firm said Tuesday. "We therefore see a combination of exceptional near-term shipping earnings and a structurally higher medium-term earnings base, with the broad-based guidance upgrade providing further confidence in the outlook."
Analysts also noted that the United Arab Emirates-based energy maritime logistics company' surpassed its expectations for second-quarter revenue, EBITDA and net income. They also expect the solid results to continue as the situation related to the disruption in the Strait of Hormuz, which supported increased activity for the company, persists.
The buy-rated stock's price objective is 7.60 Emirati dirhams.