Bakkafrost (Buy, TP: NOK720.00) - Another challenging autumn ahead
We view the Q2 results as neutral, while the operational outlook appears soft. The turnaround in Scotland will take longer than we expected given the Q2 challenges. Bakkafrost has already recognised DKK42m in incident-based mortality costs for Q3. Furthermore, it has revised the large smolt strategy for the Faroe Islands, resulting in delays to harvest volume growth. We reiterate our BUY, but have cut our target price to NOK720 (800).
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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