AAK (Buy, TP: SEK200.00) - Cash release earlier than expected
The Q4 results reinforced our view that the working capital headwinds in AAK are diminishing faster than expected driven by lower raw materials costs, while still-high cost inflation and interest costs dampen the near-term earnings momentum. We reiterate our BUY and SEK200 target price as we continue to like the margin recovery and capital release equity stories in the name.AAK is a producer of high-value added vegetable oils and fats. Co. operates in three business segments: food ingredients, chocolate and confectionery and technical products and feed.
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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