Bakkafrost (Buy, TP: NOK580.00) - High uncertainty in H1e
We expect Bakkafrost to be hit hard in H1 by Covid-19, given its exposure to premium-paying overseas markets, but then gradually to regain its position. We forecast operating EBIT of DKK270m, 17% below consensus of DKK327m. Bakkafrost has a habit of surprising positively in tough markets, but given the current environment we fear the outlook is stacked against it short-term. We have cut our 2020e EPS by 10.2% and 2021–2022e by 0.2%, but we reiterate our BUY and NOK580 target price. The Q1 results are due at 06:00 CET on 5 May.
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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