Braemar — Geopolitical factors weigh on charter rates

Despite a challenging trading environment in H225, which has prompted a modest adjustment to forecasts, Braemar’s trading outlook for FY26 is promising. The underlying activities continue to expand and diversify, and the company remains well positioned to leverage its strong balance sheet to drive its growth strategy in a fragmented market. Although we have adjusted forecasts modestly, we have maintained our 535p valuation as this is driven by our dividend discount model, which remains unchanged. Furthermore, it is worth highlighting the substantial valuation differential between Braemar and its only quoted peer, Clarkson.