Icelandic Salmon (Buy, TP: NOK150.00) - Challenging Q2 and soft outlook
Q2 operating EBIT of NOK-43m was NOK34m below our estimate and NOK39m below consensus, driven by one-offs of EUR3.9m (cNOK63/kg) in another round of unflagged biological challenges. 2024 volume guidance was cut by 2kt, to 13kt, and challenges in H1 should affect 2025 volumes as well. The Q3 guidance is for still-high costs and comments regarding smolt release for 2024–2025 suggest a slower harvest volume ramp-up than we previously expected. We have cut our 2025–2026e EPS by 12–19% and reiterate our BUY, but have lowered our target price to NOK150 (170).
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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