Hold Rating Maintained Amid Uncertainty from Golden Ocean Group and CMB.Tech Merger

Jefferies analyst Omar Nokta maintained a Hold rating on Golden Ocean Group (GOGL – Research Report) today and set a price target of $8.00.

Omar Nokta has given his Hold rating due to a combination of factors surrounding the recent merger agreement between Golden Ocean Group (GOGL) and CMB.Tech (CMBT). The merger is structured as an all-stock deal, where CMBT will control a significant portion of the combined entity, and the terms imply a premium to GOGL’s current share price. However, this premium is subject to change based on CMBT’s share price fluctuations, which introduces uncertainty in the valuation.
Additionally, the departure of GOGL’s principal shareholder, John Fredriksen, has removed a previous premium associated with his stake, leading to a correction in GOGL’s share price. The merger will create a large fleet under one entity, enhancing the company’s market position, but the all-stock nature of the deal suggests limited immediate upside for GOGL shareholders. These factors contribute to the decision to maintain a Hold rating, reflecting a cautious outlook on the stock’s near-term performance.

According to TipRanks, Nokta is a 5-star analyst with an average return of 12.8% and a 60.00% success rate. Nokta covers the Industrials sector, focusing on stocks such as ZIM Integrated Shipping Services, Navios Maritime Partners, and Safe Bulkers.