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On Tuesday, Stifel analysts maintained a Buy rating and a $37.00 price target for Cadeler (NYSE:CDLR), a company specializing in offshore wind farm installation and services. According to InvestingPro data, analysts unanimously recommend buying the stock, with price targets ranging from $32 to $37. The firm’s positive stance comes after Cadeler reported fourth-quarter earnings for 2024 that surpassed both Stifel’s projections and the wider market consensus. This outperformance was attributed to lower than anticipated operating expenses.
Cadeler experienced a utilization rate of 66% throughout 2024, which was primarily due to scheduled maintenance and upgrades across four of its vessels. The company’s financial position remains solid, with a current ratio of 1.82 indicating strong liquidity to meet short-term obligations. Despite this, the company managed to triple its full-year 2024 EBITDA to €126 million. The final quarter of the year saw Cadeler take delivery of its first newbuild vessel, Wind Peak, which immediately began operations under contract in Europe. Following this, the company received the M-Class newbuild, Wind Maker, in January, which was promptly deployed. The Wind Pace is expected to join the fleet shortly.
The expansion of Cadeler’s fleet is set to significantly boost the company’s financial performance. InvestingPro analysis reveals strong revenue growth potential, with sales expected to more than double this year. With new vessels coming into service, Cadeler is projecting a substantial increase in revenues and EBITDA for the year 2025. The company has provided guidance indicating expected revenues in the range of €485 million to €525 million and EBITDA forecasts between €278 million to €318 million. InvestingPro subscribers have access to 13 additional key insights about Cadeler’s growth prospects and financial health.
In response to these developments and the company’s optimistic outlook, Cadeler shares experienced an uptick in the European market on Tuesday morning. While the stock has faced a 25% decline over the past six months, the anticipated arrival of the first A-Class newbuild in the third quarter of 2025 and another M-Class vessel in the fourth quarter is likely to further enhance Cadeler’s earnings potential in the upcoming year. For comprehensive analysis of Cadeler’s valuation and growth metrics, visit InvestingPro.
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