DAVY VIEW

ICG delivered a solid statement ahead of its AGM with additional strategic initiatives, including delivery of a new container vessel (now five owned vessels) and a six-year extension of the Belfast Port (with a further three-year extension option). On trading ahead of the peak summer season, freight (RoRo, Container Freight and Terminal Lift) is strong, and we believe the new ship (WB Yeats) is performing well while there was some softness in car volumes in the off season. We are likely to keep our underlying EBITDA forecasts broadly unchanged but there will be a c.€3m uplift for IFRS 16 changes, bringing EBITDA to c.€91m, with net income numbers broadly unchanged. We maintain our ‘Outperform’ rating and €6 price target.