Costly financing cuts the target price
TARGET CHANGE
CHANGE IN TARGET PRICE
€ 0.14 vs 0.40 -66.0%

In the aftermath of last week's developments on equity line financing, we have updated our model. The massive dilution resulted in a 3x increase in the number of outstanding shares. We are expecting the financing woes to continue into next year, and have hence downgraded our target price.


CHANGE IN EPS
2022 : € (0.01) vs (0.02) ns
2023 : € (0.01) vs (0.03) ns

The dilution as a result of the conversion of the bonds (NEGMA OCABSA) into shares had a significant impact on our EPS forecast as the conversion created 70.8 million shares.


CHANGE IN NAV
€ 0.27 vs 0.83 -67.2%

The downgrade in the NAV is also explained by the increase in the number of outstanding shares. We are not expecting a very immediate recovery in NAV.


CHANGE IN DCF
€ 0.22 vs 0.66 -67.3%

The downward change in DCF is also explained by the massive dilution. However, for FY2023, our forecast takes into account the assumption of the sale of a floater technology. This could give a significant boost to next year's cash flow.