AAK (Buy, TP: SEK235.00) - Set for strong recovery
We expect a 27.8% increase in Q4 sales YOY and an adj. EBIT margin of 7.0%, owing to an expected strong recovery from Covid-19 headwinds and easy comparables. We expect the sustained recovery in the past few quarters to continue in Q4 and to further drive improved financial performance, supported by a shift in the portfolio mix. We reiterate our BUY, but have lowered our target price to SEK235 (238) given the recent short-term intensification of pandemic-related headwinds. We see scope for higher multiples given the outlook, as the stock is trading at a 12-month forward P/E of 21.5x.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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.