Bakkafrost (Hold, TP: NOK665.00) - New tax model in the Faroes
A new tax model on salmon farming in the Faroe Islands took effect on 1 January 2025. The new model caps the maximum revenue tax bracket at 7.5% (previously 20%), but adds a new special corporate tax of 12% to the Faroes farming segment. In a high-salmon-price environment (~ÑOK100/kg), the tax would have a positive effect on EPS. However, on our current spot salmon price estimate (NOK89–92), we have cut our 2025–2026e EPS by 6–4% and reiterate our HOLD and NOK665 target price.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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