AAK (Buy, TP: SEK370.00) - Still-solid CBE appetite
Q4 marked a strong end to 2024, with 19% growth in adj. EBIT YOY (following 43% in 2023), well above the full-year guidance of >10%. Although there were signs of weaker end-consumer demand in the wider chocolate market in Q4, we expect strong demand for cocoa butter equivalents (CBEs) in 2025 and AAK’s new contracts to be supportive of earnings on our view that price/mix is likely to offset weaker volumes. We reiterate our BUY and SEK370 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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