AAK (Buy, TP: SEK270.00) - Surging cocoa price sweet spot
Although high cocoa prices for a prolonged period are likely negative for the chocolate industry in general (pressuring volumes), the surge in cocoa butter prices in 2023 and YTD should be near-term positive for AAK in prompting its customers shift to its product formulations. We reiterate our BUY and SEK270 target price.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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