Austevoll Seafood (Buy, TP: NOK116.00) - Minor model adjustment
We have cut our 2019e EPS by 2.1% ahead of the Q3 results (due at 07:00 CET on 15 November) on a lower salmon spot price in the quarter, which recently prompted us to reduce our Lerøy Seafood estimates. We expect Austevoll Seafood to report Q3 EBITDA of NOK1,026m, ~9% below consensus of NOK1,222m. Since we are only 3% below consensus on Q3e EBITDA for Lerøy Seafood, part of the deviation comes from other operations at Austevoll Seafood, where quarterly earnings can be volatile between quarters. We do not consider these estimate changes to be material, and have not changed our BUY recommendation. We reiterate our NOK116 target price.Austevoll Seafood is a pelagic fishery and seafood company with operations in Norway, Chile, Peru, Ireland and the U.K. Co.'s operations include fishing vessels, fishmeal plants, canning plants, freezing plants, and salmon farming. Co. has four segments: salmon and trout, which consist of the production to sales and distribution of Atlantic salmon and trout; fishmeal and oil, which consist of the production and sales of the products; pelagic North Atlantic, which consist of the production, sales and distribution of fishmeal, fish oil and frozen pelagic fish products; and human consumption, which consist of the production, sales and distribution of fresh, frozen and canned fish products.
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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