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On Wednesday, Stifel analysts maintained a positive outlook on Cadeler (NYSE:CDLR) shares, reiterating a Buy rating and a $37.00 price target, representing a 77% upside from the current price of $20.92. The endorsement follows Cadeler’s financial results for FY24, which surpassed expectations. The company, known for its significant role in offshore wind farm development and operations, has experienced a notable increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), which tripled to $126 million for FY24. According to InvestingPro data, the company achieved impressive revenue growth of 129% in the last twelve months.
The analysts attributed this financial growth to Cadeler’s successful integration with Eneti, a merger that has expanded the company’s capabilities and market reach. The upward trajectory is expected to continue as Cadeler is set to welcome five newbuild additions by the end of the year. These new assets are anticipated to contribute to the company’s ability to replicate this year’s financial performance. InvestingPro analysis reveals strong fundamentals, with a healthy current ratio of 1.53 and impressive gross profit margins of 50.06%. (Subscribers can access 10+ additional ProTips on Cadeler’s financial health.)
Cadeler’s market demand remains robust, particularly in Europe and Asia, where large-scale project development is on the rise. The company has also benefited from the increasing demand for shorter-term operations and maintenance (O&M) services. These services are helping to bridge employment gaps and ensure continuous revenue streams.
Despite some uncertainties in the U.S. market, Stifel analysts are confident in the strength of Cadeler’s contracts. They predict that the company’s stock will experience upward movement as it begins to realize the cash flows from these contracts. The positive forecast from Stifel reflects confidence in Cadeler’s strategic growth and operational efficiency in the offshore wind sector.
In other recent news, Cadeler reported fourth-quarter earnings for 2024 that exceeded both Stifel’s projections and the broader market consensus, largely due to lower than anticipated operating expenses. The company achieved a full-year 2024 EBITDA of €126 million, tripling its previous figures. Cadeler’s fleet expansion is underway with the delivery of the newbuild vessel, Wind Peak, which began operations in Europe, and the M-Class newbuild, Wind Maker, received in January. These developments are expected to significantly enhance Cadeler’s financial performance, with projected revenues for 2025 ranging from €485 million to €525 million and EBITDA forecasts between €278 million to €318 million. Stifel analysts have maintained a Buy rating for Cadeler, setting a price target of $37. The company’s optimistic outlook is bolstered by the anticipated arrival of additional vessels, including the first A-Class newbuild in the third quarter of 2025. These strategic fleet additions are likely to further improve Cadeler’s earnings potential.
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