On Monday morning, Norwegian announced that CEO Jacob Schram will leave with immediate effect and will be succeeded by CFO Geir Karlsen.
The share was at 9.93 Norwegian kroner on Monday morning.
”New company, new case,” ABG begins the analysis. The brokerage believes that Norwegian is now stronger than ever with an 80 percent debt reduction compared to the end of 2019 and highlights an estimated cash of 5.4 billion Norwegian kroner at the end of 2021.
”More importantly, Norwegian has exited its longer-haul routes and reduced its short-haul capacity by 40 percent, allowing the company to focus on its profitable routes,” ABG writes.
The brokerage house emphasizes that based on the valuation of comparable companies, a justified value of 15 Norwegian kroner per share is.
”Furthermore, we argue that Norwegian has an advantage over many of its European competitors given (1) a strong balance sheet, (2) their leading position in the Nordic leisure market, (3) a very competitive cost position and (4) the focus on profitable routes,” ABG Sundal Collier summarizes.
