Bakkafrost (Hold, TP: NOK630.00) - No early Christmas present
Late on 19 December, Bakkafrost issued a Q4 profit warning due to extraordinary mortality in the UK with costs of DKK174.6m QTD. We now estimate Q4 EBIT of DKK165m, 53% below consensus. We have cut our 2021e EPS by 21% and 2022e EPS by 3.4%. A turnaround in the UK will likely take longer than we and the market expected. We have downgraded the stock to HOLD (BUY) and cut our target price to NOK630 (700).
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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