AAK (Buy, TP: SEK210.00) - Raw-material tailwinds continuing
Our Q1e EBIT is slightly above consensus, as we expect the positive raw-material cost trend YTD to support AAK’s gross margin despite continued headwinds from its Russian exit and lower volumes in the grocery channel. We reiterate our BUY, but have raised our target price to SEK210 (200), reflecting higher estimates and an improved commodity-price outlook.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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