Icelandic Salmon (Buy, TP: NOK185.00) - Trading at attractive levels
Despite severe sea lice challenges in Q3 and Q4, we see significant value at the current share price. 2024 is set to be a lost year for growth, but 2025 volumes should be unaffected, resulting in c55% volume growth. We calculate 42% upside potential to our DCF and 38% to our target price, making the stock a top pick for 2024. For Q4, we expect operating EBIT of NOK40m, slightly above consensus of NOK27m, from a 7.2kt harvest, corresponding to an EBIT/kg margin of NOK5.6. We reiterate our BUY, but have reduced our target price to NOK185 (190).
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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